Ripple Labs is facing potential fines and penalties amounting to $2bn in an ongoing legal battle with the US Securities and Exchange Commission over the sale of its cryptocurrency, $XRP
Stuart Alderoty, Ripple’s chief legal officer, disclosed in a social media post on March 25 that the SEC had filed court papers under seal. The documents, scheduled for public release with redactions later today, are expected to outline the regulator’s arguments for the penalties.
The legal saga stems from the SEC’s allegations that Ripple, along with its CEO Brad Garlinghouse and co-founder Chris Larsen, unlawfully raised more than $1.3bn through unregistered securities offerings by selling $XRP .
US District Judge Analisa Torres ruled in July that Ripple’s sale of XRP, worth $728.9mn to hedge funds and sophisticated investors, constituted unlawful sales of unregistered securities. However, Torres also ruled that the sale of $XRP on exchanges and through algorithms did not violate US securities law. Ripple is expected to file its response to the SEC’s motion next month.
Was this article helpful?
