The United States Securities and Exchange Commission (SEC) is set to impose a fine of $2 billion on Ripple Labs, says Stuart Alderoty, Ripple’s Chief Legal Officer.
On March 25, he added a post on X still addressing the issue stating that:
“As you will see when the SEC’s brief is made public tomorrow, they ask the Judge for $2B in fines and penalties.”
This specificity, however, will wait until the SEC’s reply, which will be given to the public. The SEC filed a case against Ripple in 2020 to prove that the sale and purchase of XRP is equivalent to sales and purchases of unregistered securities. XRP (Ripple’s native digital currency) which had just been launched shortly became the sixth-largest cryptocurrency by market capitalization.
A judge ruled last year that programmatic XRP sales to individual investors through cryptocurrency exchanges are not considered securities transactions, which was a huge win for Ripple Labs. However, the judge also adamantly maintained that sales contracts valued at $728 million that were made between institutional investors and other clients weren’t unregistered securities either.
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