Ripple (XRP) disputes SEC's astronomical demand: That's too much!

U.S. blockchain payment provider Ripple Labs has appealed Securities and Exchange Commission's (SEC) request for a hefty penalty. SEC demanded that the company pay a $2 billion penalty for violating the law.

Ripple lawyer James Filan, in the appeal motion made public, stated that they oppose the penalties demanded by SEC because they are excessive. XRP is of the opinion that the figure should be reduced to a reasonable price of $10 million in return.

In the appeal document, it was stated that the $2 billion requested by the Commission had nothing to do with the actual circumstances of the case. Ripple believes that it has not engaged in any illegal activity that would justify such a heavy financial penalty. The company defended itself that its XRP sales were conducted with sufficiently informed institutional investors who were transparent and fully shared with transaction details.

Ripple asked the court to reject this request, underlining the legal victories it has achieved in the case. Last summer, Judge Analisa Torres ruled that XRP would not be classified as an investment contract.

"They're trying to intimidate crypto"

Ripple's Chief Legal Officer Stuart Alderoty shared the following words from his X account:

"SEC's request is just a reflection of the ongoing threats to the crypto sector in the U.S., in a case that Ripple won and found neither carelessness nor evidence of fraud."

Our opposition to the SEC's request for $2B in penalties for legacy institutional sales is now public. In a case that had no allegations (or findings) of recklessness or fraud, and in which Ripple won on significant issues, the SEC's ask is just more evidence of its ongoing...

— Stuart Alderoty (@s_alderoty) April 23, 2024

SEC has until May 6, 2024, to submit the summary of its response to the court.

XRP price

Ripple's cryptocurrency XRP recovered somewhat in mid-April, gaining strength from its main support at 0.416.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.