Ripple Fights SEC's $2 Billion Fine with $10 Million Proposal

In a bold legal move, Ripple countered the SEC's demand for nearly $2 billion in penalties with a proposed fine of just $10 million.

This comes after a court found Ripple guilty of selling its cryptocurrency, XRP, to institutional investors without proper registration.

Ripple filed a detailed 186-page document late Monday, pushing back against the SEC's harsh penalties.

Ripple acknowledges the court’s ruling and has adapted its business practices accordingly.

The company affirmed its acceptance of the previous court decision, explaining that it has since altered how it sells XRP and its contracts to comply with legal standards.

This acceptance and proactive adjustment are key to Ripple's argument against the necessity of further punitive actions, such as an injunction.

Ripple disputes the SEC's call for disgorgement, arguing there's no evidence of financial harm to investors from Ripple’s actions.

The company stresses that there's no justification for disgorgement, which is a repayment of ill-gotten gains, as the SEC hasn’t proven that Ripple’s activities financially damaged investors.

Regarding civil penalties, Ripple argues for a much lower amount than the SEC proposes, emphasizing that $10 million aligns with precedents and the nature of the infringement. They cite similar legal cases to argue against the excessive fines and the proposed injunction intended to prevent future violations.

The XRP lawyer community supports Ripple’s defense, viewing its arguments as strong against the SEC’s demands. Bill Morgan, a prominent pro-XRP lawyer, agrees with Ripple’s stance against disgorgement.

Other lawyers like Jeremy Hogan criticize the SEC's approach and anticipate a swift decision from Judge Torres, possibly within 60 to 90 days from the final briefing on May 6.

This legal standoff between Ripple and the SEC is pivotal, potentially impacting how cryptocurrencies are regulated and treated legally in the U.S.