The SEC claimed its request is geared at sending a “strong message” to other crypto market players about not tolerating conduct like Ripple’s.
The three-year lawsuit between the United States Securities and Exchange Commission (SEC) and blockchain solutions firm Ripple Labs is nearing its end. However, the SEC wants roughly $2 billion in fines and penalties.
A tweet by Ripple chief legal officer Stuart Alderoty disclosed that the SEC requested the damages in its motion for judgment and remedies filed on Friday, March 22. The redacted version of the document is to be made public today.
SEC Requests $2B Damages in Ripple Case
Although the SEC’s brief is still under seal, information obtained by CoinDesk revealed that the agency asked the court to order Ripple to pay $876 million in civil penalties, $876 million in disgorgement, and $198 million in prejudgment interest, amounting to $1.95 billion in total.
The SEC claimed its request is geared at sending a “strong message” to other crypto market players about not tolerating conduct like Ripple’s. In 2020, the US agency accused Ripple of violating securities laws through its sales of XRP, the native token of the Ripple ecosystem, to both retail and institutional customers. The Commission said Ripple raised roughly $1.3 billion by offering unregistered securities.
Over two years after the SEC filed the lawsuit, a New York judge ruled that only Ripple’s institutional sales of XRP violated securities laws, not the trading of the asset to retailers on exchanges.
Ripple to File Response Next Month
Both parties have worked toward concluding the case over the past few months. Last week, they filed a joint letter seeking the court’s approval to seal issues related to the upcoming remedies-related briefing. The grand trial has been scheduled for April 23.
While Alderoty slammed the SEC in his tweet, he revealed that Ripple would file its response to the agency’s request next month. The court expects the firm’s response by April 22.
“Our response will be filed next month, but as we all have seen time and again, this is a regulator that trades in statements that are false, mischaracterized, and designed to mislead. They stayed true to form here. Rather than faithfully apply the law, the SEC remains bent on wanting to punish and intimidate Ripple – and the industry at large,” the Ripple CLO said.
Meanwhile, XRP was trading at $0.65, up 2.6% in the past 24 hours at the time of writing. Analysts expect the asset to have a remarkable year if the court’s ruling favors Ripple.