‘Ripple is well-positioned to pay a significant civil penalty,’ says the SEC
The SEC’s filing on Ripple’s proposed $1.95 billion in fines and penalties stated the company required an incentive to stop breaching laws that went beyond “just the cost of doing business.” According to a brief from the United States Securities and Exchange Commission (SEC), Ripple may face fines and penalties that differ from the one promoted by the company’s management.
In a March 25 filing in U.S. District Court for the Southern District of New York, SEC attorneys requested that Ripple pay $876,308,712 in disgorgement, $198,150,940 in prejudgment interest, and a $876,308,712 civil penalty, for a total of almost $1.95 billion. As a result of Ripple’s “defiance of the law,” including continuing to sell XRP despite legal warnings, the regulator assessed the fines and penalties to be fair.
The Securities and Exchange Commission (SEC) warned that ripple was well positioned to pay a significant civil penalty. “And one is necessary here both because a civil penalty should not be just the cost of doing business for a securities law violator, as the Second Circuit has recognised, and because the necessity for deterrence is evident given Ripple’s massive number of unregistered sales of XRP over the
The filing confirmed what Ripple Chief Legal Officer Stuart Alderoty stated in a March 25 X post: around $2 billion in fines and penalties. Alderoty alleged the SEC tried to “punish and intimidate” Ripple, and the company planned to respond to the proposed judgment d in April. SEC proposed ruling stated: “Only a significant sanction from this Court and the return of ill-gotten gains will cause Ripple to correct vits conduct.” Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen were sued by the Securities and Exchange Commission in December 2020 for selling tokens to raise $1.3 billion in unregistered securities. In July 2023, Judge Analisa Torres ruled that XRP was not a security regarding programmatic sales on digital asset exchanges.
The SEC’s filing on Ripple’s proposed $1.95 billion in fines and penalties stated the company required an incentive to stop breaching laws that went beyond “just the cost of doing business.” According to a brief from the United States Securities and Exchange Commission (SEC), Ripple may face fines and penalties that differ from the one promoted by the company’s management.
In a March 25 filing in U.S. District Court for the Southern District of New York, SEC attorneys requested that Ripple pay $876,308,712 in disgorgement, $198,150,940 in prejudgment interest, and a $876,308,712 civil penalty, for a total of almost $1.95 billion. As a result of Ripple’s “defiance of the law,” including continuing to sell XRP despite legal warnings, the regulator assessed the fines and penalties to be fair.
The Securities and Exchange Commission (SEC) warned that ripple was well positioned to pay a significant civil penalty. “And one is necessary here both because a civil penalty should not be just the cost of doing business for a securities law violator, as the Second Circuit has recognised, and because the necessity for deterrence is evident given Ripple’s massive number of unregistered sales of XRP over the
The filing confirmed what Ripple Chief Legal Officer Stuart Alderoty stated in a March 25 X post: around $2 billion in fines and penalties. Alderoty alleged the SEC tried to “punish and intimidate” Ripple, and the company planned to respond to the proposed judgment in April. SEC proposed ruling stated: “Only a significant sanction from this Court and the return of ill-gotten gains will cause Ripple to correct its conduct.”
Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen were sued by the Securities and Exchange Commission in December 2020 for selling tokens to raise $1.3 billion in unregistered securities. In July 2023, Judge Analisa Torres ruled that XRP was not a security regarding programmatic sales on digital asset exchanges.
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