The Securities and Exchange Commission (SEC) is not resting in its fight against cryptocurrency company Ripple Labs. The SEC is going to ask a judge to fine the said company nearly USD 2 billion, according to information provided by the company’s executives.
Through X, the legal director of Ripple Labs, Stuart Alderoty, reported that this Tuesday, March 26th, will be released the brief by the commissions, in which the high economic sanction against the company that issues the token known as XRP is demanded.
The executive informed that the U.S. regulator “trades on false, mischaracterized and misleading statements”. The SEC continues its battle in wanting to punish and intimidate Ripple and the entire industry, instead of faithfully applying the law,” the lawyer questioned.
We are confident that the Court will address the remedial phase fairly,” Alderoty said. The company’s response will be known next month.
Brad Garlinghouse, CEO of Ripple Labs, also came out to criticize the SEC’s request. According to Garlinghouse, the SEC “has repeatedly acted outside the law”.
Additionally, he said that the SEC has already been reprimanded for “gross abuse of the power entrusted to it by Congress” and for acting “without faithful allegiance to the law”. This, bearing in mind that the U.S. regulator was already accused of abuse of its power in a case linked to a digital platform known as DEBT Box.
With its request, the U.S. Securities and Exchange Commission is capitalizing on the setback Ripple suffered last February, when Judge Sarah Netburn granted a motion by the regulator and forced the company to disclose its financial statements.
The SEC filed the motion in January, arguing that knowing Ripple Labs’ financial health is an important factor in determining any potential sanctions on that company.
Also, with the multi-million dollar fine request against Ripple, the SEC continues to press for proof that Ripple Labs violated U.S. securities laws.
This is despite a court handing Ripple a partial victory last year, when it ruled that XRP is not a security and therefore its trading did not involve a violation of U.S. securities laws.
While that landmark ruling was thought to end litigation that has spanned more than 3 years, the SEC’s new request to fine Ripple Labs makes it clear that the court battle is still raging.
Also, with the multi-million dollar fine request against Ripple, the SEC is still pushing to prove that Ripple Labs violated U.S. securities laws.
This is despite a court handing Ripple a partial victory last year, when it ruled that XRP is not a security and therefore its trading did not involve a violation of U.S. securities laws.
While that landmark ruling was thought to end litigation that has spanned more than 3 years, the SEC’s new request to fine Ripple Labs makes it clear that the court battle is still raging.
