SEC TARGETS RIPPLE FOR $2 BILLION IN FINES, SAYS CLO 

The U.S. Securities and Exchange Commission (SEC) is reportedly seeking $2 billion in fines from Ripple Labs, as stated by the company’s chief legal officer.

On March 25, Stuart Alderoty, Ripple’s Chief Legal Officer (CLO), disclosed that the SEC’s demands will become public on Tuesday, March 26, when the regulator is expected to request $2 billion in fines and penalties from the judge.

Alderoty mentioned that the SEC has requested these penalties from U.S. District Judge Analisa Torres in Manhattan in documents filed confidentially, criticizing the SEC’s approach:

“The SEC is more interested in penalizing and scaring Ripple and the broader industry than in applying the law accurately.”

SEC’s Controversial Actions

Alderoty pointed out that Ripple plans to file its rebuttal next month, criticizing the SEC for its approach, “The regulator is known for making misleading, misrepresented, and false statements designed to deceive.”

The SEC initiated a lawsuit against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen in 2020, alleging they had unlawfully raised approximately $1.3 billion through an unregistered securities offering of Ripple’s native token, XRP.

Ripple’s CEO, Brad Garlinghouse, also openly criticized the SEC and its chairman, Gary Gensler, for overstepping legal boundaries.

He accused the SEC under Gensler of acting unlawfully, highlighting instances where the agency was reprimanded by judges for overreaching its authority and lacking fidelity to legal standards, particularly referencing the DEBT Box and Ripple cases.

Garlinghouse emphasized, “The lawsuit made no accusations of fraud or reckless behavior, and there’s no historical precedent for such a case.”

Partial Win for Ripple in Court

Judge Analisa Torres ruled in favor of Ripple to some extent, determining that XRP sales on public crypto exchanges did not constitute a security under law. She also rejected the SEC’s appeal while the case continued.

John E. Deaton from the ‘CryptoLaw’ channel commented on the absence of fraud or investor harm allegations, criticizing the SEC’s disregard for retail investors who incurred $15 billion losses due to the SEC’s theories.

XRP Market Reaction

The news had minimal immediate impact on XRP’s market price, which mirrored the overall market’s upward trend. At the moment, XRP has risen 2% on the day, reaching $0.644, per CoinGecko data.

Despite today’s gains, XRP has underperformed in comparison to the broader cryptocurrency market this year. It has seen an increase of only 5.5% since the start of 2024, while the overall market cap has surged by 57%, largely thanks to Bitcoin’s performance.

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