Ripple has filed an opposition to the Securities and Exchange Commission (SEC)’s demand for $2 billion in penalties.
In a detailed motion made public by Ripple’s defense lawyer, James Filan, the company disputes the SEC’s proposed penalties as overly punitive. Ripple argued that the suggested fines are disproportionate and suggested $10 million instead.
Ripple Challenges SEC’s Heavy Fines in Court Filing
The filing emphasized that the requested $2 billion in penalties by the Commission is not aligned with the actual circumstances of the case.
According to the document, there were no allegations or findings of reckless behavior or fraudulent activity that would typically justify such severe financial penalties.
The company clarified that while it did engage in sales of XRP, these were conducted transparently and with knowledgeable institutional investors who were fully aware of the transaction details.
Ripple highlighted the significant victories it secured on key legal issues throughout the litigation, suggesting that the SEC’s demands are inconsistent with the court’s findings. The filing indicated that these victories could undermine the SEC’s position.
Our opposition to the SEC’s request for $2B in penalties for legacy institutional sales is now public. In a case that had no allegations (or findings) of recklessness or fraud, and in which Ripple won on significant issues, the SEC’s ask is just more evidence of its ongoing… https://t.co/GLcdsyInZW
— Stuart Alderoty (@s_alderoty) April 23, 2024
“In a case that had no allegations (or findings) of recklessness or fraud, and in which Ripple won on significant issues, the SEC’s ask is just more evidence of its ongoing intimidation against all of crypto in the U.S,” stated Ripple Chief Legal Officer Stuart Alderoty.
In the filing, Ripple proposed a much lower penalty of $10 million, which they argue is more in line with the nature of the violations alleged and the actual conduct of the company. This amount, they suggest, is sufficient to serve the legal interests without being disproportionately punitive.
Case Pending Reply Brief and Final Decision
Filan shared a timeline of the remedies briefing in March, listing that the SEC’s reply brief is due May 6, 2024.
The next steps in the case involve the court’s review of Ripple’s opposition and the SEC’s proposals, with the final decision on penalties to be made by Judge Analisa Torres.
“We remain confident that the Judge will approach this final remedies phase fairly,” said Alderoty.
XRP price has seen an increase, currently trading at $0.5464 according to CoinMarketCap, up by 1.6% with a peak at $0.5687 post the filing announcement.
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