Crypto News- In a bold move, Ripple Labs has countered the U.S. Securities and Exchange Commission’s (SEC) staggering proposal for a nearly $2 billion fine. In their opposition filed on Monday, Ripple staunchly opposed the SEC’s push for a colossal penalty against the XRP Ledger blockchain company.
Ripple’s Verdict: 10M Dollars Suffices, Rejects SEC’s Massive 1.95B Dollars Fine
Rejecting the SEC’s demand, Ripple’s filing asserted, “The Court should deny the SEC’s requests for an injunction, for disgorgement, and for pre-judgment interest, and should impose a civil penalty of no more than $10 million.”
The SEC’s aggressive stance sought to force Ripple Labs to shell out a jaw-dropping $1.95 billion, comprising $876 million in disgorgement, $198 million in prejudgment interest, and a hefty $876 million civil penalty. However, Ripple’s legal team challenged this demand head-on.
Ripple’s Legal Offensive: Challenging SEC’s Overreach and Unprecedented Penalties
Ripple’s lawyers didn’t mince words, criticizing the SEC’s approach as “administrative overreach.” They argued that the SEC’s proposed penalties far exceeded what was warranted, given the circumstances of the case. Moreover, Ripple’s legal defense highlighted that the SEC’s requested disgorgement and penalties were unprecedented and not supported by legal precedent.
Furthermore, Ripple emphasized its lack of gains from institutional sales in a redacted section, asserting that there were no profits to disgorge. This move aimed to underscore the fairness of their position while pushing back against the SEC’s aggressive pursuit.
The battle between Ripple and the SEC continues to unfold, with Ripple showing no signs of backing down in the face of the regulatory giant’s demands.
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