Ripple Challenges SECs 2 Billion Penalty Seeks 10 Million in Legal Battle Intensifying

Ripple vehemently disputes a proposed $2 billion fine from the SEC for alleged unregistered securities offerings of XRP tokens.
Despite the prolonged legal dispute, Ripple’s CEO remains hopeful for a resolution by September 19.
The ongoing legal battle between Ripple and the SEC has entered a critical phase, with Ripple contesting the proposed $2 billion penalty for unregistered securities offerings of XRP tokens. The company is pushing for a reduced fine instead.
The legal dispute, which spans three years, revolves around allegations that Ripple conducted unregistered securities offerings through the sale of XRP tokens. Earlier this year, the SEC imposed a $2 billion fine on the blockchain company. In response, Ripple’s chief legal officer, Stuart Alderoty, passionately argued for a maximum fine of $10 million.
Ripple’s legal team defended their position by comparing penalties imposed on other companies like TerraForm Labs. They emphasized that there were no direct fraud allegations against Ripple and agreed to pay penalties totaling $4.47 billion for fraudulent activities, including disgorgement, prejudgment interest, and a civil penalty.
Ripple’s attorney pointed out that the SEC typically recommends civil penalties based on a percentage of gross revenue, suggesting that an “appropriate fine” for Ripple should not exceed $10 million.
The complex legal battle may continue for years, but Ripple’s CEO, Brad Garlinghouse, remains optimistic about a resolution. He hinted that the case could conclude by late September.
Echoing this optimism, lawyer Jeremy Hogan predicted a potential settlement of $100 million, aligning with the positive sentiment within the Ripple community following previous victories.
These victories led to a significant price surge for XRP, indicating that a final win for Ripple could boost the cryptocurrency’s performance.
Despite the legal turmoil, XRP was trading at $0.4902, showing a 1.26% increase in the last 24 hours. The outcome of the legal battle holds significance for the cryptocurrency market and regulatory landscape, with a favorable ruling potentially boosting XRP’s price and shaping future regulatory actions.