Ripple Pushes Back: Rejects SEC’s $2 Billion Claim in Ongoing Legal Battle

Ripple Labs firmly rebutted the SEC's claims, asserting that the figures involved were considerably overstated, amounting to a mere fraction of the agency's assertions. The company filed a motion to dismiss the SEC's lawsuit, which sought to recover $2 billion from Ripple. This legal standoff follows a series of allegations from the SEC, including compensatory damages, interest, and civil penalties totaling nearly $2 billion.

Acknowledging token sales to institutional clients, Ripple's representatives countered the SEC's assertions by highlighting that civil fines, according to the law, should not surpass $10 million. Moreover, the company refuted claims of ongoing XRP sales to institutions, characterizing the SEC's approach as an attempt to instill fear within the digital asset market.

Stuart Alderoty, Ripple's Chief Legal Officer, criticized the SEC's stance, citing a previous court ruling that favored Ripple on key issues. Alderoty believes that the SEC's actions reflect broader intimidation tactics aimed at the entire crypto ecosystem in the United States.

Our opposition to the SEC’s request for $2B in penalties for legacy institutional sales is now public. 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… https://t.co/GLcdsyInZW

— Stuart Alderoty (@s_alderoty) April 23, 2024

As the legal battle between Ripple Labs and the SEC unfolds, the outcome holds significant implications for the regulatory landscape of cryptocurrencies. Ripple's stance underscores a broader industry struggle against perceived regulatory overreach, highlighting the complexities of balancing innovation and compliance in the evolving world of digital finance.

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