Ripple's Attorney Disclosed That The United States Securities And Exchange Commission (Sec) Demanded "A Large Amount Of Money" From The Company.

Ripple CEO Brad Garlinghouse and Chief Legal Officer (CLO) Stuart Alderoty claimed that the SEC overstepped its authority, referencing a case against Debt Box in which a judge imposed sanctions on the SEC.

Ripple Labs' Chief Legal Officer Stuart Alderoty announced that the U.S. Securities and Exchange Commission (SEC) has proposed a $2 billion fine against the blockchain-based company Ripple in a federal court in the United States.

In a post on X on March 25, Alderoty stated that the SEC has requested the court to impose a $2 billion fine and punitive measures against Ripple, as part of documents submitted to the court and sealed until March 26. This request is part of the ongoing legal proceedings initiated by the SEC against Ripple in 2020.

Alderoty commented, "Instead of fulfilling its legal obligations in a fair and honest manner, the SEC continues to choose to punish and intimidate Ripple and the broader industry." He added, "We trust that the court will manage the process fairly."

Ripple's Chief Legal Officer stated that the firm plans to respond to the SEC's request in April, but accused the regulator of operating with "misleading, erroneous, and deceptive statements." On March 18, a judge in Utah imposed sanctions on the SEC for its "malicious" conduct regarding the evidence presented in its case against Debt Box.

Ripple CEO Brad Garlinghouse commented on the $2 billion penalty request on the X platform, stating, "This is absolutely unprecedented." He added, "When we respond to the SEC, we will continue to expose what they really are."

In December 2020, the SEC accused Ripple and its executives, Brad Garlinghouse and co-founder Chris Larsen, of raising $1.3 billion through the sale of XRP tokens in an unregistered securities offering. In July 2023, Judge Analisa Torres ruled that the programmatic sales of XRP on digital asset exchanges did not constitute a security.

This decision may have contributed to the SEC's choice to dismiss charges against Garlinghouse and Larsen without prejudice in October 2023. The regulator currently has ongoing cases against US-based crypto firms, including Coinbase, Binance, and Kraken.

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