Follow us on:

cc_icon

Post: Ripple vs. SEC: Battle Over XRP and Civil Penalties

Ripple vs. SEC: Battle Over XRP and Civil Penalties

Key Points:

  • Ripple’s legal battle with the SEC started in December 2020 over allegations of using XRP as an unregistered security.
  • Ripple’s legal team filed a notice of supplemental authority requesting an “appropriate” civil penalty in response to the SEC’s demands.
  • The SEC had previously settled with Terraform Labs for $4.5 billion, influencing Ripple’s arguments on civil penalties.

Blockchain Firm Ripple’s Legal Battle with SEC:

The ongoing case between Ripple and the SEC began in December 2020 when the SEC accused Ripple of illegally using XRP as an unregistered security to raise capital.

Ripple’s Request for Civil Penalty Consideration:

Ripple’s legal team has submitted a notice of supplemental authority to the court asking for an “appropriate” civil penalty to be imposed in response to the SEC’s demands. They reference the SEC’s settlement with Terraform Labs as a basis for rethinking the penalty.

Implications of Terraform Labs Settlement:

The recent $4.5 billion settlement between the SEC and Terraform Labs, approved by a federal judge, has influenced Ripple’s argument for a limited civil penalty. Ripple aims for a penalty not exceeding $10 million, contrasting the SEC’s request for around $2 billion in disgorgement, prejudgment interest, and civil penalties.

Hot Take:

By leveraging precedents set by settlements in similar cases, Ripple’s legal team is strategically framing the argument for a reduced civil penalty. This approach aims to highlight inconsistencies or excessive penalties imposed by the SEC, potentially swaying the court’s decision in Ripple’s favor.

Recent Posts
Social Media
Twitter
Email
Telegram
Facebook
Offers
CheekyCrypto Membership Platform
Hardware Wallets
Bitget
Swissborg
Plutus Card