Ripple Opposes SEC’s $2 Billion Fine Request, Argues for $10 Million Penalty

Ripple has filed its opposition to the Securities and Exchange Commission’s (SEC) motion for nearly $2 billion in penalties, arguing that the figure should be closer to $10 million. The SEC has accused Ripple of raising $1.3 billion through the sale of XRP, which the agency claims is an unregistered security. The SEC argued in its court filing last month that Ripple should pay close to $2 billion in fines, including $876 million in disgorgement, $198 million in prejudgment interest and a civil penalty of $876 million.

Ripple’s Chief Legal Officer, Stuart Alderoty, stated, “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.” Ripple also pointed out that the way it sells XRP has changed since last year’s court ruling. The firm has publicly acknowledged the ruling and has modified its contracts to avoid the problems identified by the court.

Ripple’s opposition motion challenges the SEC’s request for $2 billion in penalties for legacy institutional sales of XRP. The company contends that there were no allegations or findings of recklessness or fraud in the case. Ripple’s Chief Legal Officer, Stuart Alderoty, claims the SEC’s request is evidence of ongoing intimidation against the entire crypto industry in the U.S. Ripple CEO Brad Garlinghouse draws parallels between Ripple’s response and the resignation of two SEC lawyers in the Debt Box case.