• 29 May, 2024
News

Ripple Strikes Back at SEC’s Demands For $2 Billion

Ripple Labs’ ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) escalated with recent filings revealing the growing tension between the two parties. Ripple challenged the SEC’s demand for nearly $2 billion in penalties, a figure stemming from the regulatory agency’s accusation that Ripple violated securities laws by selling its XRP token to institutional investors without proper registration.

Ripple’s counterargument, outlined in a recent court filing, underscores the company’s rejection of the SEC’s proposed fines, advocating for a penalty closer to $10 million. Ripple’s Chief Legal Officer, Stuart Alderoty, pointed out that the SEC’s case against Ripple lacked allegations of recklessness or fraud, suggesting that the SEC’s approach represents an attempt to intimidate the broader U.S. cryptocurrency industry.

“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 intimidation against all of the crypto in the U.S.,” Alderoty said in a public statement. “We remain confident that the Judge will approach this final remedies phase fairly.”

Ripple filed a Motion to Strike new expert materials, which the SEC submitted in support of its motion for remedies and entry of final judgment, per a James K. Filan post on X. The materials, known as the “Fox Declaration,” contained accounting analysis and substantive conclusions about remedies, which Ripple claims were not properly disclosed during the discovery phase. Ripple’s legal team contends that the SEC’s actions amount to “sandbagging,” violating Federal Rule of Civil Procedure 37(c)(1) and this Court’s orders.

The SEC opposed Ripple’s motion, with both parties agreeing that the SEC would have five business days to file an opposition brief. Ripple would have three business days to submit a reply.

In a parallel development, two SEC lawyers involved in the SEC vs. Debt Box case resigned after the agency faced scrutiny for bad faith conduct. The resignations followed a court order denying an SEC motion to dismiss charges against Debt Box, citing the SEC’s abuse of the judicial process.

The current valuation of XRP (XRP) stands at $0.5481, demonstrating a positive trend with a 1.83% price increase over the last 24 hours and a significant 13.75% gain over the past week. The 24-hour trading volume has reached $1,597,628,551.55, contributing to a robust market cap of $30,199,942,243, based on a circulating supply of 55 billion XRP. Concurrently, there has been a noticeable increase in the number of wallets containing over 1 million XRP.

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