Ripple, the cross-border payment protocol company, challenged the SEC’s proposed $2 billion penalty in the US, arguing that a more reasonable fine of around $10 million would be more appropriate.
In their latest court submission, Ripple Labs challenged the SEC’s proposal of imposing a penalty of around $2 billion on the company before a federal judge. They asked the court to reject the SEC’s demands for a restraining order, return of profits, and pre-judgment interest.
Ripple proposed that the court impose a less severe civil penalty, not exceeding $10 million, according to his statement.
“Ripple has every intent of adhering to that guidance in the future and every incentive to do so. The SEC’s Draconian remedial requests are ungrounded in law or principle. This Court should reject them in their entirety.”
The SEC’s court filing revealed that they requested Ripple to pay back $876 million in disgorgement, an additional $198 million in pre-judgment interest, and a Civil penalty of $876 million. Adding these amounts together resulted in a total demand of nearly $2 billion.
About a month ago, Stuart Alderoty, Ripple Labs’ chief legal officer, disclosed that the SEC had requested penalties from Ripple. On March 25, he made this information public. According to Alderoty, the SEC is determined to penalize and intimidate not only Ripple but also the entire crypto industry.
In the latest submission, Ripple contested the penalty as excessive and estimated that $10 million represents a reasonable portion of their true earnings. The exact percentage withheld was omitted from the disclosed documents.
The document further pointed out that the proposed amount is “comparable in terms of percentage and dollars to similar digital asset cases without any guilty mind or significant harm or risk to others.”
According to Alderoty, representing X, the Securities and Exchange Commission’s (SEC) actions against them and resulting fine serve as evidence of the SEC’s persistent intimidation towards crypto in the US. Ripple‘s legal team emphasized that no accusations or discoveries of carelessness or deceit were present in the case.
Furthermore, the legal representative holds the view that Ripple prevailed in crucial points of the case, and anticipates a fair assessment by the judge during the determination of final penalties.
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2024-04-23 14:22