SEC Moves for $2 Billion Penalty in Landmark XRP Case

The SEC has filed its motion for remedies and entry of final judgment, along with a memorandum of law in support of the motion against Ripple Labs in the XRP lawsuit. According to Ripple's CLO, the filings will be made available to the public on Tuesday, March 26, while Ripple Labs will file its response next month. Ripple CEO Brad Garlinghouse criticized SEC Chair Gary Gensler for acting outside the law and cited the SEC's recently lost DEBT Box case while calling out the regulator for "gross abuse of the power entrusted to it by Congress."

SEC Files Motion for Remedies in Landmark XRP Case

Washington, D.C. - March 25, 2024 - In a significant development in the ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs, the SEC has filed a motion for remedies and entry of final judgment in the XRP lawsuit.

$2 Billion Penalty Request

The SEC's motion seeks a $2 billion civil penalty against Ripple Labs, in addition to injunctive relief that would permanently prohibit the company from offering or selling XRP as an unregistered security.

Ripple Executives Denounce SEC Actions

Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty swiftly condemned the SEC's motion, accusing the agency of engaging in "falsehoods" and "mischaracterizations" designed to mislead the public.

Alderoty: SEC 'Bent on Punishing Ripple'

In a statement, Alderoty asserted that the SEC's actions were "a gross abuse of power" and that Ripple would "continue to expose the SEC for what they are" in upcoming hearings.

Garlinghouse Slams SEC for 'Unprecedented' Request

Garlinghouse criticized the SEC's request for a $2 billion penalty as "unprecedented" and devoid of legal basis, vowing to "continue to expose the SEC" for its "arm-twisting actions."

XRP Price Remains Stable Despite Challenges

Despite the SEC's aggressive stance, the price of XRP, Ripple's native cryptocurrency, has remained relatively stable, showing only a modest increase of 2.24% in the past 24 hours.

Discounted XRP Sales Blamed for Low Price

However, industry experts have raised concerns that Ripple's past practice of selling XRP at a discount to institutional investors could be weighing on the cryptocurrency's price.

SEC Argues for Investor Harm

The SEC's motion alleges that Ripple's discounted sales harmed investors, particularly those who purchased XRP at higher prices.

Attorney Highlights Ripple's Reputation Risk

Attorney Fred Rispoli warned that the SEC's motion, if accurate, could damage Ripple's reputation and further suppress the price of XRP.

Dumping Threat from Institutional Investors

Rispoli expressed concern that institutional investors who acquired XRP at a discount might flood the market when the price rises, exacerbating selling pressure.

Ripple Faces Critical Response

The SEC's motion has sparked a flurry of reactions within the cryptocurrency community, with many commentators expressing sympathy for Ripple while criticizing the SEC's actions.

Legal Battle Continues

The SEC's motion marks a significant escalation in the long-running legal battle between the agency and Ripple Labs. Ripple is expected to respond to the motion in the coming weeks.