- The SEC seeks sanctions against Ripple, including injunctive relief, disgorgement of illegal profits and significant civil penalties.
- It argues that these actions are necessary to deter Ripple and the like from future violations of securities laws.
The SEC has taken legal action against Ripple, alleging violations of securities laws through illegal sales of XRP, the company’s cryptocurrency. The SEC is seeking to obtain various types of sanctions against Ripple, which include:
- Injunctive relief: to prevent future violations by Ripple.
- Disgorgement of illegally obtained profits: arguing that Ripple should not profit from sales that the court has determined to be illegal.
- Civil fines: with the goal of deterring both Ripple and other companies from committing similar violations.
You can also read: Ripple’s CTO Sets Record Straight: No Hidden XRP Sales
The SEC justifies these actions by pointing to Ripple’s history of violations, the reckless nature of its conduct, and the fact that these were not isolated incidents. According to the regulator, these factors underscore the need for regulatory action to compensate for the harm caused to investors and the markets, and to prevent future violations of securities laws.
🚨 Breaking: #SEC demands a whopping $2B from #Ripple in a landmark case shaking the crypto world! Ripple fights back, slamming the charges as an intimidation tactic and overreach. Could this be a game-changer for crypto regulation? 🌐💰 #CryptoBattle #RippleVsSEC #FintechFuture… pic.twitter.com/JKxHDqF9Wo
— Marcel Knobloch aka Collin Brown (@CollinBrownXRP) March 26, 2024
Ripple, for its part, has responded critically to the SEC’s actions
Stuart Alderoty, Ripple’s senior counsel, has criticized the SEC for its attempt to punish and intimidate both Ripple and the cryptocurrency industry in general.
In addition, Brad Garlinghouse, CEO of Ripple, has condemned what he sees as regulatory overreach, pointing to alleged improprieties under Gary Gensler’s leadership at the SEC. Ripple has announced plans to file its response in April, signaling its readiness to defend itself against the SEC’s proposed charges and sanctions.
