SEC Seeking $2 Billion in Fines From Ripple in XRP Case

On Mar 26, 2024

One of the most important legal battles for the digital asset market took an interesting turn Tuesday. Specifically, the US Securities and Exchange Commission (SEC) reportedly seeks $2 billion in fines from Ripple in the two sides’ ongoing XRP lawsuit.

The specifics of the request are still sealed until Wednesday, following an agreement by both sides. However, Ripple CEO Brad Garlinghouse took to X (formerly Twitter) to share the imposed penalty the agency seeks. Garlinghouse promised to “expose the SEC” in Ripple’s response.

Also Read: Ripple: XRP Forecasted To Rise 15 Cents, Reach $ 0.79

SEC Asking New York Judge To Impose $2 Billion in Penalties to Ripple, Says CEO

The remedies phase of the case began this week, with the details of the agency’s briefing set to go public on Wednesday. However, it has now come to light that the SEC is seeking $2 billion in fines from Ripple for the ongoing XRP case. The development was originally shared by Ripple chief legal officer Stuart Adleroty.

Brad Garlinghouse noted the fine is requested for a case that “involved no allegations (let alone findings) fraud or recklessness.” In a subsequent post, Garlinghosue said that the SEC has consistently “acted outside of the law” during the case. However, he also noted that this behavior has not gone unnoticed by judges who have spoken out against the agency.

Gensler’s SEC has repeatedly acted outside the law – not going unnoticed by Judges admonishing 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 not also forget… https://t.co/vay6WDBfJc
— Brad Garlinghouse (@bgarlinghouse) March 25, 2024

Also Read: Ripple XRP: Historical Trend Hints at 30% Surge in April

Additionally, Ripple co-founder and executive chairman, Chris Larsen, commented on the development. He said that Gensler’s agency “has become unhinged.” While also stating that the agency “thinks it’s above the law,” based on its consistent behavior.

The development is yet another signal of the SEC’s distaste and distrust for the digital asset market. Earlier this month, reports surfaced of its budding legal campaign against Ethereum. Despite its past decisions, it was seeking to overturn the precedent and change its security status.

Therefore, the change would threaten its chance to be the second digital asset to receive a Spot ETF. The first, Bitcoin, has been tremendously successful since the SEC was left with no other choice than to approve the investment products in January.