The U.S. Securities and Exchange Commission (SEC) is seeking a $1.95 billion fine to be imposed on Ripple Labs by a New York federal judge as the final judgement in their ongoing legal dispute. The SEC has accused Ripple Labs of illegally selling $1.3 billion worth of unregistered securities through the sale of XRP tokens to investors, both retail and institutional.

Ripple Labs' Chief Legal Officer, Stuart Alderoty, stated that the request for the significant fine was part of documents that will be revealed on Mar. 26. Ripple Labs plans to file their response next month.

The SEC has proposed that Ripple Labs pay $198 million in prejudgment interest, $876 million in disgorgement, and an $876 million civil penalty. Alderoty criticized the SEC, claiming that the regulator makes false statements to mislead rather than applying the law faithfully. Ripple Labs CEO Brad Garlinghouse also condemned the SEC for its actions, calling it a gross abuse of power.

In July of the previous year, Judge Analisa Torres ruled that XRP was not considered a security when sold to the public, but categorized it as a security when sold to institutions.