The US Securities and Exchange Commission (SEC) is seeking a $1.95B fine against Ripple Labs. According to court records, the fine consists of $876m in disgorgement, $198M in prejudgment interest, and a civil penalty that matches the disgorgement amount.
Stuart Alderoty, Ripple Labs' Chief Legal Officer posted the SEC's request online Monday. Court document copies will be made available to the public on March 26, with a response from Ripple expected by April 22.
The SEC urges the Court to consider the ease of manipulation in the cryptocurrency sector. They want to dissuade similar acts against Ripple Labs, indicating that regulators won't tolerate misbehavior. The prosecution against Ripple began in December 2020, with Ripple accused of violating federal securities laws by selling XRP to both institutional and individual consumers.
In July 2023, Judge Analisa Torres declared that Ripple's institutional XRP sales violated the law while clearing XRP exchanges and algorithm sales.
Alderoty blasted the SEC's decision, vowing Ripple's response next month. This case lays the groundwork for prospective cryptocurrency regulation trends in the United States, as industry observers keenly monitor the litigation outcome and the court's fining decision.
