Ripple Company has submitted its objection to the US Securities and Exchange Commission (SEC) asking for remedies and the entry of final judgment, disputing the requested amounts of $876,308,712 in disgorgement and $198,150,940 in prejudgment interest. Nevertheless, Ripple consents to paying a maximum fine of $10 million instead of the $876,308,712 civil penalty proposed by the SEC.
US SEC v. Ripple Lawsuit Nears End?
In a document submitted to the court on April 22nd, Ripple contested the SEC’s proposed penalties and arguments in their briefing regarding remedies. However, Ripple admitted to paying civil penalties as per the court’s decision that Ripple had broken Section 5 of the Securities Act of 1933 by selling XRP under institutional investment contracts.
Notably, Ripple presented three arguments:
- The SEC has failed to establish a likelihood of violations in the future and reckless disregard for the law in institutional sales by Ripple.
- Govil bars disgorgement because the SEC cannot show pecuniary harm and Ripple’s legitimate business expenses be deducted from any disgorgement.
- Civil penalty should not exceed $10 millions based on the SEC’s weak arguments and fines in other digital asset cases.
According to Ripple’s testimony in court, the company has adapted its XRP sales approach, secured necessary licenses for international sales, and amended contracts to prevent potential legal issues, as instructed by the court. However, Ripple expressed opposition to the SEC’s suggested remedial actions, which they view as an excessive use of power, based on unfounded assumptions that Ripple could violate laws in the future.
In addition to submitting an opposition brief, Ripple also provided affirming declarations and evidence showing that the company is in compliance and legally allowed to sell XRP in various other regions.
The SEC will submit its sealed reply brief on May 6. Both parties and outside parties need to file their letters and opposition on the sealed information in the documents by May 20.)
Ripple v SEC News – Lawyers Reveal Appeal, Settlement, Fine Aspects in XRP Lawsuit
Ripple CLO Stuart Alderoty on the SEC’s Flawed Filing
The U.S. Securities and Exchange Commission (SEC) is requesting the court to order Ripple to pay a total of $1.9 billion, which includes $876.3 million in disgorgement, $198.1 million in prejudgment interest, and an equal amount as a civil penalty.
Stuart Alderoty of Ripple Labs, the CLO, asserts that the SEC’s case lacked accusations or discoveries of negligence or deceit. He remains hopeful that Judge Torres will preside impartially during this last phase for determining the remedies.
“We’ve made it known that we disagree with the SEC’s proposed $2B penalty for past institutional sales by Ripple. In this case, where no carelessness or deceit were claimed or proven, and where Ripple was victorious on key points, the SEC’s demand appears to be another instance of their efforts to intimidate the entire crypto sector in the United States.”
It’s fitting that we submit our response today, following the recent resignations of two SEC lawyers involved in the Debt Box case due to their misconduct.
After Gensler leaves, the US will still be dealing with the consequences of the agency’s failed policies.
— Brad Garlinghouse (@bgarlinghouse) April 23, 2024
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2024-04-23 09:49