Ripple Labs has submitted a formal response to the SEC’s request for a New York judge to enforce a penalty of close to $2 billion on the company that created the XRP Ledger blockchain. In the filing on Monday, Ripple stated, “The Court should deny the SEC’s requests for an injunction, for disgorgement, and pre-judgment interest, and should impose a civil penalty of no more than $10 million.”
The SEC proposed that Ripple Labs pay $876 million in disgorgement, $198 million in interest before judgment, and a $876 million civil penalty for a total of $1.95 billion. The court had previously found Ripple violated federal securities laws by making institutional sales of XRP.
Ripple’s lawyers argued that the SEC’s remedial requests are “more evidence of the administrative overreach that has beset this case.” They stated, “The agency acts as though it had prevailed entirely and had proved reckless conduct. It has done neither.
Ripple Labs is contesting the SEC’s demand for a financial return, citing legal precedents that block such actions. The SEC is also pursuing a penalty far greater than those in previous digital asset cases over 20 times larger. Ripple counters that it has not generated any profits that would necessitate a return.
The ongoing legal battle between Ripple and the SEC is drawing significant attention from the cryptocurrency industry due to its potential implications on future digital asset regulations.
Also Read: BingX Accused of Enabling Sanctions Violations in Iran.
