The U.S. Securities and Exchange Commission (SEC) has asked a judge to order Ripple to pay nearly $2 billion in fines and penalties.
The SEC first sued the payments company in late 2020 for allegedly selling XRP as an unregistered security.
Last summer, U.S. District Judge Analisa Torres ruled that Ripple’s automated, open-market sales of XRP, also known as programmatic sales, did not constitute a security offering, contrary to what the SEC alleged.
However, the judge sided with the SEC’s contention that Ripple’s sale of XRP directly to institutional buyers constituted an offering of securities.
James K. Filan, an attorney and crypto legal expert, shared the SEC’s new Motion for Remedies and Entry of Final Judgment, filed with the court on Monday.
The SEC has asked the court to order Ripple to pay $876,308,712 in disgorgement, $198,150,940 in prejudgment interest and a civil penalty of $876,308,712, totaling approximately $1.95 billion.
The regulator argues
“Ripple’s nearly $1 billion in long-standing securities law violations alone warrants injunctions, significant penalties, and the stretching of Ripple’s profits. Additional evidence demonstrates the egregious nature of Ripple’s misconduct, and highlights the importance of this relief for deterrence and to ensure that Ripple ceases its illegal conduct.”
Stuart Alderoty, Ripple’s chief legal officer, accuses the SEC of trading “statements that are false, mischaracterized and intended to deceive.”
“Rather than faithfully apply the law, the SEC remains determined to punish and intimidate Ripple – and the industry as a whole. We trust that the Court will approach the remedies phase fairly.”
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