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The U.S. Securities and Exchange Commission (SEC) has approached a judge in New York, seeking to impose a penalty close to $2 billion on Ripple Labs.<\/p>\n
Stuart Alderoty, the Chief Legal Officer at Ripple Labs, announced via social media<\/a> that the SEC has proposed such a substantial fine, with the redacted court documents expected to be publicly available by Mar. 26. According to the SEC\u2019s request, it wants Ripple Labs to be ordered to return $876 million in gains, pay $198 million in prejudgment interest, and a $876 million in civil fines, totaling approximately $1.95 billion.<\/p>\n As you will see when the SEC\u2019s brief is made public tomorrow, they ask the Judge for $2B in fines and penalties. 1\/4 https:\/\/t.co\/HM8dBbn7lp<\/a><\/p>\n \u2014 Stuart Alderoty (@s_alderoty) March 25, 2024<\/a><\/p>\n<\/blockquote>\n This legal battle was initiated in December 2020, when the SEC accused Ripple Labs and its two <\/span>executives of breaching federal securities laws through their sales of XRP to both large-scale investors and the general public. However, in a decision made last July, Judge Analisa Torres of New York determined that while <\/span>Ripple\u2019s direct sales to institutions were in violation<\/a>, the distribution of XRP through exchanges and algorithmic processes did not contravene U.S. regulations.<\/span><\/p>\n The SEC\u2019s legal filings argue for a strict stance against similar violations within the cryptocurrency industry, urging the court to deliver a clear message against such infractions. Alderoty has voiced criticisms against the SEC\u2019s actions and mentioned that Ripple Labs plans to submit a formal reply to the SEC\u2019s motion in the coming month, with the SEC highlighting that Ripple\u2019s response must be submitted by no later than April 22, 2024.<\/p>\n XRP is not the only token in the SEC\u2019s crosshairs. Early Ethereum (ETH) advisor Steven Nerayoff has recently expressed serious concerns<\/a> over the investigation of Ethereum by the SEC. He also noted that the prospects of Ethereum exchange-traded funds (ETFs) might be facing more rigorous examination.<\/p>\n The development follows a price prediction suggesting that XRP may soon see a 25% upward swing to regain its previous price of $0.75<\/a>. The analysis highlighted the coin\u2019s price being near the 200-day moving average support, and potentially triggering further growth towards the $0.92 mark.<\/p>\n Featured image: Canva<\/strong><\/em><\/p>\n<\/p><\/div>\n\n
XRP vs the SEC<\/span><\/h2>\n