TL;DR
- Ripple has contested the SEC’s request for a $2 billion fine related to XRP sales, asserting that most transactions were lawful and informed, proposing a maximum penalty of $10 million instead.
The case is progressing to a critical trial that could impact XRP’s price and the wider cryptocurrency market.
Ripple Opposes the SEC’s Multi-Billion Request
The dispute between Ripple and the US Securities and Exchange Commission (SEC) over legal issues is becoming more intense. About a month ago, the SEC filed a lawsuit against the company, claiming they had broken rules in the sale of XRP, and sought a penalty of approximately $2 billion.
The leadership team at Ripple, headed by CEO Brad Garlinghouse and chief legal officer Stuart Alderoty, were not receptive to the proposal, expressing their disagreement with the SEC’s allegations, which they believed to be inaccurate, misrepresentative, and intended to deceive.
Recently, Alderoty disclosed that Ripple had submitted an opposition to the agency, expressing confidence that the magistrates would handle the final remedies impartially. The business presented several key justifications for keeping the fine below $10 million.
Initially, it was stated that no accusations exist suggesting Ripple misled or deceitfully sold XRP to people and organizations during earlier sales.
“Those entities had complete knowledge of the transactions they were participating in and made their decisions based on their own financial gains.”
Next, Ripple argued that the majority of their XRP transactions were legal and they didn’t have intentional knowledge of any wrongdoing. The company additionally claimed that there was minimal financial harm caused and that the SEC couldn’t provide proof to the contrary.
“Finally, the SEC errs in suggesting (at 24)that Ripple’s total assets warrant a massive fine. The SEC regularly imposes far smaller fines to deter misconduct by the largest corporations in the world,” the opposition concluded.
It’s Trial Day
Ripple’s reply came shortly before the start of the final phase of the lawsuit between the company and the US SEC, which should decide the outcome of the lengthy legal battle. The grand trial is scheduled to begin today (April 23), and some believe the firm enters with the upper hand since it secured three partial court wins last year.
The resolution of the case could have a major impact on XRP’s price, possibly triggering a bull run (in the event of a decisive victory for Ripple). The opposite scenario, though, might cause a setback for the entire cryptocurrency industry and lead to the implementation of stringent rules.
For those interested in deepening their understanding of the lawsuit and its potential impact on XRP‘s price fluctuations, please check out the informative video we’ve prepared for you below.
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2024-04-23 11:10