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
Bitcoin Coinbase Premium Gap Shows Positive Trend for 25 Days

The Bitcoin Coinbase Premium Gap has remained positive for 25 consecutive days, indicating potential renewed demand from American institutional traders.

FBI Issues Warning About Fraudulent Tokens on Trons Network

The FBI has issued a warning about fraudulent tokens on the Trons network that falsely claim to be from federal law enforcement.

AI Chatbots Change Responses Based on Mental Health Disclosure

Recent research shows that AI chatbots change their responses based on users' mental health disclosures, highlighting the need for understanding AI personalization.

Republican Senators Express Optimism on Crypto Bill Progress

Republican senators express cautious optimism about progress on the stalled crypto market structure bill, particularly regarding stablecoin yield provisions.

Key Indicators for Dogecoin's Price Movement Identified

Cryptollica highlights critical indicators that could influence Dogecoin's price trajectory.

Crypto Analyst Predicts Dogecoin Could Reach New All-Time High

Crypto analyst Cryptollica predicts Dogecoin could reach a new all-time high due to institutional interest and market dynamics.

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