Ripple, the company behind XRP, declined the U.S. Securities and Exchange Commission’s demand to return approximately $2 billion over institutional sales of XRP tokens.
Ripple’s lawsuit counters that the disputed amount is relatively insignificant and accuses the Securities and Exchange Commission (SEC) of bullying tactics in the digital asset sector. Recently, the SEC presented papers to the court requesting that Ripple recoup the estimated $2 billion they are suing for.
The compensation list encompasses a total of $2.85 billion. This includes $876 million for actual damages, an additional $198 million as interest on that sum, and yet another $876 million in civil penalties.
Ripple’s representatives admitted to selling XRP tokens to institutions, but they emphasized that any resulting penalty could not surpass $10 million. They also refuted the Securities and Exchange Commission’s claims suggesting an ongoing institutional XRP sales operation.
According to Ripple’s Chief Legal Officer, Stuart Alderoty, the Securities and Exchange Commission (SEC) is making accusations based on a weak case, as Alderoty sees it. He believes that the SEC is attempting to make an example out of crypto companies in order to deter market participants with its aggressive stance.
The SEC’s proposal for imposing a $2B penalty on Ripple over institutional sales that didn’t involve any recklessness or fraud allegations has become public. In a case where Ripple prevailed on crucial points, this request from the SEC seems excessive and further highlights their persistent…
— Stuart Alderoty (@s_alderoty) April 23, 2024
If there were no indications of carelessness or deceit in this particular case, and Ripple emerged victorious on major points, the SEC’s request can be seen as yet another instance of their efforts to bully the entire crypto industry in the US.
Stuart Alderoty, Ripple’s Chief Legal Officer
In July 2023, a court ruled in favor of the company to some extent in an SEC lawsuit. The judge determined that the sale of XRP to retail consumers did not break securities laws. Nevertheless, the legal proceedings continue, with the next hearing scheduled for examining the company’s institutional sales of XRP.
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2024-04-23 19:34