The U.S Securities and Exchange Commission (SEC) has requested a New York court to consider the seriousness of Ripple Labs' wrongdoing as it pursues a settlement of nearly $2 billion from the company. The SEC has asked Judge Analisa Torres to approve the fine, which includes disgorgement, prejudgment interest, and a civil penalty as part of the proposed final judgment submitted on Monday.

According to the SEC, Ripple's actions in selling unregistered securities to the public using crypto assets warrant a strong punitive response to deter both Ripple and other entities from engaging in similar activities. The legal battle between Ripple and the SEC began after allegations that Ripple earned $1.3 billion through the sale of XRP, which the SEC claimed was an unregistered security. While some transactions were deemed not to violate securities laws, sales to institutional investors were identified as securities, prompting the SEC to push for a final judgment.

Ripple was informed of the $2 billion penalties and fines suggested by the SEC, with a deadline for response set for April 22.