XRP Lawsuit Update: Ripple Fights Back Against “Unfair” $2 Billion Penalty

In the ongoing legal tussle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), tensions have reached a boiling point. The SEC has delivered its final blow with a remedies brief, seeking permanent injunctions and disgorgement against Ripple. This latest move has sparked strong reactions, with Ripple’s Chief Legal Officer, Stuart Alderoty, openly questioning the fairness of the SEC’s legal tactics.

Here’s all you need to know.

Clash of Arguments: SEC vs. Ripple

In its remedies-related final brief, the SEC argues the need for “permanent injunctions” as there is a “reasonable likelihood” of Ripple repeating its wrong will be repeated. 

The SEC stabs at Ripple, contending that even after 3 years of the lawsuit, Ripple’s primary business “continues to be, as it has been since 2013, unregistered sales of XRP.”

Taking this as a point, the SEC argues that even if Ripple had not committed a single violation since 2020, another violation could still ‘be anticipated’.

Ripple, on its part, maintains that it has revamped its operations to ensure compliance. However, the SEC dismisses this as a mere rehash of previous arguments rather than a genuine commitment to change.

However, the SEC counterargues this claim, stating that “Ripple’s first ‘assurance’ is not even an actual assurance—it is instead another attempt to relitigate summary judgment arguments.” The SEC’s latest remedies brief seems to point fingers at the company, lashing out that any changes made by Ripple are nothing more than “misreading or ignoring what the Order says.”

All these make the basis of the SEC’s argument to impose a permanent injunction on Ripple Inc. from operating its business. 

Lashing Out At the SEC

Following the release of the SEC’s remedies brief, Stuart Alderoty didn’t mince words. He criticized the SEC for what he sees as a disregard for international regulatory standards and accused the agency of trying to mislead the court.

“And just when you think the SEC can’t sink any lower if you are a financial regulator outside the U.S. and have done the hard work of establishing comprehensive crypto licensing frameworks, know that the SEC has no respect for you and thinks you are handing out the equivalent of fishing licenses.”

Alderoty’s strong words underscore the growing friction between Ripple and the SEC, as both sides dig in their heels over the terms of potential penalties and fines.

The Big Question: What Will the Fine Be?

In its final brief, the SEC made it clear that it is not backing down from the $2 billion demand for penalties and fines. Out of this crazy amount, the SEC used the millions of profits claimed by RIpple from its unregistered sales of XRP as the reason for disgorgement.

On the other hand, Ripple’s last brief proposed a significantly lower penalty amount, suggesting that a fine under $10 million would be more appropriate. It claimed that the SEC’s demands were way too excessive.

All Is In Judge Netburn’s Hands Now

With the legal battle nearing its climax, all eyes are on Judge Sarah Netburn, who will have the final say on Ripple and the SEC’s competing claims. Whether it’s a ruling in favor of the SEC’s injunctions and disgorgement or a negotiated settlement, the outcome will set a precedent for future regulatory actions in the crypto world.

Also Check Out: Is This The End of Ripple vs SEC Lawsuit? SEC’s Redacted Remedies Reply Could Change Everything

Who will prevail in this David vs. Goliath battle? Only time will tell.