Ripple Labs has challenged the SEC’s proposal in court by filing an opposition on Monday. In this document, Ripple argued that the judge should reject the SEC’s demands for an injunction, requiring XRP sales to cease, disgorgement of alleged ill-gotten gains, and pre-judgment interest. Instead, they suggested a fine of up to $10 million as a reasonable civil penalty.
The SEC suggested that Ripple Labs should pay a total of $1.95 billion in penalties for breaking federal securities laws. This amount includes $876 million for disgorgement, which is the profit made from the violations; $198 million in interest before judgment; and a civil penalty of $876 million. However, the court did not agree that selling XRP on exchanges or through algorithms was against the law.
In simpler terms, Ripple’s legal team contended that the SEC’s additional requests were a sign of excessive administrative intervention in this case. They further emphasized that the agency had not achieved a complete victory or proven any reckless behavior on Ripple’s part.
The agency aims to recover funds, but previous rulings from the Supreme Court and appellate courts don’t allow for this type of action. Additionally, they request a penalty that is over twenty times greater than what they have secured from any other offender or defendant in cases concerning digital assets.
Ripple argues that it didn’t make any profit to resume operations, citing income from institutional sales, taxes paid, and incurred losses instead. The legal dispute between Ripple and the SEC is being closely watched within the crypto community, as its outcome could shape future regulations for digital assets.
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2024-04-23 14:28