According to CryptoPotato, Ripple is contesting the US Securities and Exchange Commission's (SEC) proposed $2 billion penalty, suggesting a fine of no more than $10 million. The legal dispute between Ripple and the SEC has been ongoing for over three years and has recently entered its trial phase. The lawsuit revolves around the regulator's allegations that Ripple and some of its executives conducted an unregistered securities offering by selling its XRP token.
Earlier this year, the SEC sought a $2 billion penalty from Ripple for the alleged violations. Ripple's chief legal officer, Stuart Alderoty, argued that the fine should not exceed $10 million. The company's lawyers have reiterated this request, comparing the case with the one between the Commission and Terraform Labs, a now-defunct crypto firm that agreed to pay a $4.47 billion fine for fraudulent activity. The defense argued that the SEC has previously agreed that civil penalties should range from 0.6% to 1.8% of the defendant's gross revenue, claiming that the Terraform Labs case 'fits that pattern.' Therefore, they concluded that an 'appropriate' fine for Ripple would be no more than $10 million.
Despite the lawsuit being in its trial stage, Ripple's CEO Brad Garlinghouse anticipates a resolution by summer 2024. However, the complex legal process could cause delays. American lawyer Jeremy Hogan also believes the case may officially end in the next few months, envisioning a $100 million settlement. Ripple has secured three partial court wins throughout 2023, which positively impacted XRP's price. A decisive victory could potentially cause a substantial rally in the price of the token.