Ripple's general counsel Stuart Alderoty has responded to the Securities and Exchange Commission's (SEC) $2 billion demand for a penalty and fines against the blockchain firm.
SEC's request
In a post on X, Alderoty revealed that the SEC has asked a judge to impose $2 billion in fines and penalties against Ripple. The request has been submitted under seal until March 26, 2024.
Ripple's reaction
Ripple said it plans to submit a response to the SEC's request in April. The General Counsel also accused the SEC of providing false, mischaracterized statements designed to deceive.
Case background
The case against Ripple began in 2020 when the SEC accused the blockchain firm of raising $1.3 billion in unregistered funds through the sale of XRP tokens. In July 2023, Judge Analisa Torres ruled that XRP was not a security when it came to programmatic sales on crypto-currency platforms.
Outlook
The SEC's demand for $2 billion in fines and penalties against Ripple was criticized by Ripple CEO Brad Garlinghouse, who said there was "absolutely no precedent" for such a penalty. The SEC is currently pursuing civil proceedings against other crypto companies in the US, such as Coinbase, Binance and Kraken.
Conclusion
Ripple's general counsel, Stuart Alderoty, has responded to the SEC's $2 billion demand by asking for a penalty and fines against the blockchain firm. The SEC's request was criticized by Ripple, which accused the SEC of providing false and mischaracterized statements. Ripple's case is an example of the efforts of US regulatory agencies to regulate the crypto-currency sector.
