SEC plans to ask judge for $2 billion in fines and penalties from Ripple Labs

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By Harper Lee

The documents, which Ripple’s chief legal officer Stuart Alderoty said will be made public on Tuesday, are part of the continuing saga of its years-long case with the SEC.

“Our response will be filed next month, but as we have all seen time and time again, this is a regulator trading in statements that are false, misinterpreted and designed to mislead,” Alderoty said. job on X Monday. “They have remained true to form here. Rather than faithfully enforcing the law, the SEC remains intent on punishing and intimidating Ripple – and the industry as a whole.”

The Ripple CEO also took to X to rebuke the regulator, citing recent court decisions that ruled against the SEC in favor of the crypto companies it was suing.

“Gensler’s SEC repeatedly acted outside the law – which did not go unnoticed by the judges who chastised the agency for a ‘gross abuse of the power entrusted to it by Congress’ ( DEBT Box case) and for acting without “faithful allegiance to the law” (Ripple (case). Let’s also not forget Gensler’s lack of attention to SBFraud,” Garlinghouse published Monday afternoon.

The SEC declined to comment to The Block. Court documents filed by the agency appear to be under seal.

The SEC and Ripple have been embroiled in a legal battle since 2020, when the agency accused Ripple of raising $1.3 billion through the sale of XRP

, which he claims is an unregistered title. Last year, Judge Analisa Torres governed that some of Ripple’s so-called programmatic sales of XRP did not violate securities laws due to a blind bidding process in place for them. However, it ruled that other direct sales of tokens to institutional investors were securities.

RT Watson contributed reporting

Update (March 25, 8:52 p.m. UTC): Noted that the SEC declined to comment.

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