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 as an unregistered security.
Last summer, US District Judge Analisa Torres ruled that Ripple’s automated, open-market sales of XRP, referred to as programmatic sales, did not constitute security offerings, contrary to what the SEC alleged.
The judge did, however, side with the SEC’s claim that Ripple’s sale of XRP directly to institutional buyers constituted a securities offering.
James K. Filan, a defense lawyer and crypto legal expert, the SEC’s new Motion for Remedies and Entry of Final Judgment, which was submitted to 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 $876,308,712 civil penalty, which totals around $1.95 billion.
Argues the regulator,
“Ripple’s years-long, nearly $1 billion, course of violations of the securities laws alone warrants injunctions, significant penalties, and the disgorging of Ripple’s profits. Additional evidence shows the egregiousness of Ripple’s misconduct, highlighting the importance of this relief for deterrence and to ensure Ripple ceases its illegal conduct.”
Stuart Alderoty, Ripple’s chief legal officer, accuses the SEC of trading in “statements that are false, mischaracterized and designed to mislead.”
“Rather than faithfully apply the law, the SEC remains bent on wanting to punish and intimidate Ripple – and the industry at large. We trust the Court will approach the remedies phase fairly.”
