The U.S. SEC has proposed a $1.95 billion penalty against Ripple Labs and has requested a New York court to evaluate the seriousness of the company's actions. Through a proposed final judgment submitted to Judge Analisa Torres on Monday, the SEC is pushing for a fine that includes disgorgement, prejudgment interest, and a civil penalty. The SEC's main argument is focused on the severity and prevalence of Ripple's alleged misconduct, stressing the importance of sending a strong message as a deterrent to Ripple and other entities considering public capital raising through unregistered crypto-asset transactions. Ripple has been in disputes with the SEC for years following accusations of unregistered securities transactions. A recent ruling favored Ripple in certain XRP sales but upheld the SEC's claims on direct sales to institutional investors. The current dispute is centered on these direct institutional sales, with the SEC alleging that Ripple earned nearly $1 billion unlawfully. This action is believed to undermine the regulatory requirement for securities transactions to be registered, endangering the financial market's legal structure. Ripple's response to the SEC's approach and penalties has been critical, describing them as misleading and punitive. Ripple plans to submit a formal response by April 22, as directed by the SEC.
SEC Seeks $2 Billion Fine from Ripple Labs

by Giorgi Kostiuk
2 years ago

Other news
IMF Increases Global Growth Forecast for 2026 to 3.3%

The International Monetary Fund (IMF) has raised its global economic growth forecast for 2026 to 3.3%, driven by increased investments in artificial intelligence across North America and Asia.

Donald Trump Plans Lawsuit Against JPMorgan Chase

Donald Trump plans to sue JPMorgan Chase, alleging wrongful account termination after the January 6 Capitol protest.

Bybit to List IMU for Spot Trading on February 15, 2025

Bybit plans to list IMU for spot trading on February 15, 2025, expanding its digital asset offerings.

Cardano Whales Accumulate Over 210 Million ADA Amid Price Consolidation

Cardano's largest holders have significantly increased their ADA holdings while the price remains stable in a descending channel.

WaaS: Streamlining Cryptocurrency Integration for Businesses

Wallet-as-a-Service (WaaS) is a vital solution for companies to integrate cryptocurrency efficiently, allowing them to focus on product development and user experience.

Coinbase's Withdrawal Leads to Senate Banking Committee Reset

Coinbase's withdrawal of support for the crypto market structure bill led to the cancellation of the Senate Banking Committee's markup hearing and a restart of negotiations.

Be the first to know about crypto news every day
Get crypto analysis, news and updates right to your inbox! Sign up here so you don’t miss a single newsletter