Ripple Fights SEC’s $2 Billion Penalty, Seeks $10 Million
Earlier this year, the SEC put forward a $2 Billion Fine against the blockchain company for the alleged offenses. In opposition to the proposed fine, Ripple via chief legal officer, Stuart Alderoty, intensely argued proposing a maximum fine of $10 million. In their defense, the Ripple’s legal team reinforced their armored state drawing comparisons to the penalties charged on TerraForm Labs. Additionally, they highlighted the significant difference between the two cases asserting that there were no direct fraud allegations against the blockchain company. Rather, the legal team agreed to pay penalties which comprised $4.47 billion for fraudulent activities, including $3.6 billion in disgorgement, $466 million in prejudgment interest, and a $420 million civil penalty. For their defense, Ripple’s attorney highlighted that the SEC usually recommends civil penalties ranging from 0.6% to 1.8% of a defendant’s gross revenue, a case which should apply to Ripple as well. Additionally, the defense team stated that an “appropriate fine” should not be more than $10 million.
The complex nature of the legal battle could see the case going on for years. Ripple CEO Brad Garlingouse remains optimistic about a near close of the case. As earlier reported by Crypto News Flash, Brad suggested that late September could be the conclusion of the case.
