Ripple (Xrp) Rejects Sec's Billion-Dollar Claim.

Ripple stated in its announcement that the "Unjust Enrichment" demanded by the SEC has no legal or principled basis.

Ripple has objected to the Securities and Exchange Commission's (SEC) demand for a $2 billion fine against the company, arguing that the fine should not exceed $10 million.

In a new legal filing, Ripple Labs opposed the SEC's request for a nearly $2 billion fine against the company from a federal court. Ripple stated that the court should reject the SEC's requests for injunctive relief, restitution, and prejudgment interest.

Ripple also stated that the court should impose a more reasonable amount of civil penalty, not exceeding $10 million. The filing stated:

"Ripple has every intention and incentive to continue to comply with these guidelines in the future. The SEC's excessive compensation demands have no legal or principled basis. The court should reject these demands outright." Lawyers emphasized that the SEC demanded $876 million in restitution from Ripple, along with $198 million in prejudgment interest and a civil penalty of $876 million, totaling nearly $2 billion.

Ripple announced the requested fine amount about a month ago. On March 25, Ripple Labs Chief Legal Officer Stuart Alderoty disclosed that the SEC sought such fines from a federal court against the blockchain company. The lawyer noted that the SEC is determined to punish and intimidate both Ripple and the crypto industry.

In the new filings, Ripple deemed the fine amount as "unreasonable" and stated that $10 million reflects only a portion of the company's actual revenue. Ripple kept the actual percentage shared in the document undisclosed.

The filing also highlighted that the proposed amount would be proportional in percentage and dollar terms to similar digital asset cases where there is "no faulty mental condition and no significant risk of harm or damage to others."

Stuart Alderoty from Ripple claims that the SEC's actions and the request for a penalty are proof of the ongoing intimidation against the entire crypto industry in the United States. Ripple’s lawyer stated that there are no allegations or findings of recklessness or fraud in the case.

Additionally, Ripple’s legal officer believes that the company has succeeded in significant issues and hopes that the judge will approach the final resolution phase of the case fairly.

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