New York, March 26, 2024 - The U.S. Securities and Exchange Commission (SEC) has requested a New York judge to impose a hefty fine of $1.95 billion on Ripple Labs, a leading blockchain company. This substantial penalty stems from the SEC's ongoing lawsuit against Ripple, alleging violations of federal securities laws related to the sale of XRP.
According to court filings, the SEC proposes a comprehensive fine structure that includes $876 million in disgorgement, $198 million in prejudgment interest, and an additional $876 million civil penalty. The SEC's request underscores its determination to deter similar conduct within the cryptocurrency industry.
"The SEC asks the Court to consider how easily actors, particularly in the crypto asset space, can today engage in the same sort of conduct as Ripple's and send a strong message that such abuses will not be tolerated," the filing stated.
Ripple Labs has vehemently contested the SEC's allegations, maintaining that its sale of XRP did not constitute a securities offering. Stuart Alderoty, Ripple's chief legal officer, criticized the SEC's proposed fine, stating that the company would file a formal response next month.
"The SEC's request is outrageous and unsupported by the facts or the law," Alderoty said. "We will vigorously defend ourselves against these baseless claims."
The SEC's lawsuit against Ripple has been closely watched by the cryptocurrency industry, as it could set a precedent for the regulation of digital asset offerings. The case is scheduled for trial in September 2024.
About Ripple Labs
Ripple Labs is a blockchain company that provides financial services for businesses. Its flagship product, RippleNet, is a global payment network that enables fast and low-cost cross-border transactions. Ripple Labs is headquartered in San Francisco, California.
About the SEC
The Securities and Exchange Commission is an independent agency of the United States government that regulates the securities industry, the stock market, and other financial markets. The SEC's mission is to protect investors, maintain fair and orderly markets, and facilitate capital formation.
0 Comments