Ripple is currently facing a serious challenge from the Securities and Exchange Commission, which is seeking an almost $2 billion penalty from the company. The SEC has recently experienced setbacks in various cases, including a defeat in the Grayscale case on the road to approving a Bitcoin ETF. This situation is becoming more frequent, causing questions about the specifics of the latest development.
Ripple's Legal Conflict
Ripple, the creator of XRP Coin, has been embroiled in a legal dispute with the SEC since the end of 2020. Despite a summary judgment ruling that XRP Coin sales on exchanges were not securities, institutional sales were judged in favor of the SEC. Consequently, the SEC is seeking a significant penalty against Ripple for non-compliance.
In a recent submission on March 25th to the U.S. District Court for the Southern District of New York, SEC attorneys are seeking court approval for penalties totaling $1.95 billion across three categories: - $308,712 in Disgorgement - $150,940 in Prejudgment Interest - $308,712 in Civil Penalties
SEC's Position on Ripple
SEC attorneys argue that Ripple can easily cover the fine, but legal commentator Jeremy Hogan criticizes this position. The SEC believes that the penalties illustrate Ripple's continued unauthorized sale of XRP and their readiness to bear the consequences.
Stuart Alderoty, Ripple's Chief Legal Officer, has stated that the SEC is seeking to penalize and intimidate Ripple, promising a response in April.
This article was originally published on COINTURK NEWS.
