Ripple Labs, a blockchain firm, is facing a $2 billion penalty requested by the United States Securities and Exchange Commission (SEC), according to Stuart Alderoty, the company’s chief legal officer. The SEC’s request was made in a filing that was under seal until March 26. The civil case between Ripple and the SEC has been ongoing since the regulator filed it in 2020. Alderoty expressed his disappointment with the SEC, accusing them of wanting to punish and intimidate Ripple and the industry as a whole. He hopes that the court will handle the remedies phase fairly. Ripple plans to respond to the SEC in April and has criticized the regulator for making false and misleading statements.
In a separate case, a Utah judge sanctioned the SEC for acting in bad faith in relation to the evidence it provided against the company Debt Box. Ripple CEO Brad Garlinghouse criticized the $2 billion fine, stating that there is no precedent for such a penalty. He vowed to expose the SEC for their actions when responding to their request.
The SEC initially filed a lawsuit against Ripple, Garlinghouse, and co-founder Chris Larsen in December 2020. The lawsuit alleged that Ripple had raised $1.3 billion through the sale of unregistered securities in the form of XRP tokens. In July 2023, Judge Analisa Torres ruled that XRP was not a security when it was sold on digital asset exchanges. This ruling may have led to the dismissal of charges against Garlinghouse and Larsen in October 2023.
It is important to note that the SEC has ongoing civil lawsuits against other cryptocurrency firms in the United States, including Coinbase, Binance, and Kraken. These cases highlight the regulatory scrutiny faced by the crypto industry as it continues to grow and evolve.
Kudos to Ripple CEO Brad Garlinghouse for vowing to expose the SEC for their actions. The $2 billion fine seems unprecedented and unfair.
This is outrageous! $2 billion penalty? That’s absurd! 😡 The SEC is clearly trying to scare and punish Ripple. Enough is enough!
It’s disappointing to see the SEC resorting to false and misleading statements. They should be held accountable for their actions! 😡
I’m disappointed in the SEC. They should be supporting the growth of the blockchain industry, not trying to smother it with these excessive penalties!
It’s interesting to note that the SEC has ongoing civil lawsuits against other cryptocurrency firms. This shows the regulatory scrutiny faced by the crypto industry as it continues to grow.
It’s great to see Ripple continuing to flourish despite the legal battles they’re facing. They’re a resilient company.
The SEC needs to focus on real issues rather than targeting Ripple. This penalty seems like a desperate move to assert authority. 🤦♂️
The dismissal of charges against Garlinghouse and Larsen is a significant victory for Ripple. I’m happy for them!
The legal battle between Ripple and the SEC is definitely making history in the world of cryptocurrency. Exciting times! 🚀
This penalty is outrageous! The SEC should be supporting innovation, not trying to impose crippling fines on blockchain firms.
The ongoing civil lawsuits against other cryptocurrency firms indicate that the crypto industry is going through intense scrutiny. It’s a crucial time for regulation. 💼
I can’t believe the SEC’s filing was under seal for so long! March 26 must have been an intense day for Ripple.