SEC Seeks $2 Billion Penalty in Ripple Case

The Securities and Exchange Commission seeks a $2 billion penalty from Ripple. Enforcement Director Stuart Alderoty announced the hefty fine on Monday. The specifics of the request will be revealed tomorrow.

Will Ripple Face $2 Billion in Fines?

The Securities and Exchange Commission (SEC) is reportedly seeking $2 billion in penalties from Ripple, according to the agency's top enforcement official.

Stuart Alderoty, the SEC's Enforcement Director, tweeted on Monday that the agency would be asking a judge for the hefty sum, though the specific details of the request will remain under wraps until tomorrow.

"As you'll see when the SEC's motion is filed tomorrow, it will seek $2B in fines and penalties," Alderoty wrote.

Ripple vs. SEC: A Long-Running Saga

Ripple, the company behind the cryptocurrency XRP, has been embroiled in a legal battle with the SEC since 2020. The regulator hit the fintech firm with a $1.3 billion lawsuit, alleging that it sold unregistered securities in the form of XRP, which is now the sixth-largest cryptocurrency by market capitalization.

However, earlier this year, Ripple scored a partial victory against the SEC when a judge ruled that programmatic sales of XRP to retail investors did not qualify as securities.

Despite the judge also ruling that $728 million worth of contracts for institutional sales of the token did constitute unregistered securities sales, Ripple and its supporters saw the partial ruling as a win for the broader crypto industry.

Decrypt has reached out to both the SEC and Ripple for comment. This is a developing story and will be updated accordingly.