[NEWS] Ripple objects to SEC's $3 billion fine, arguing for need for review

Criticizing the SEC's actions

On the 22nd, Ripple filed an objection to the approximately $2 billion fine that the SEC (U.S. Securities and Exchange Commission) is seeking against the company.

This is related to the lawsuit over the XRP securities issue. In this lawsuit, it was determined that the sale of XRP to individual investors does not constitute a security.

On the other hand, the SEC determined that XRP sold to institutional investors constitutes a security, and the SEC is demanding that the company pay a fine for this.

Ripple's Chief Legal Officer Stuart Alderoty criticized on his X (formerly Twitter) account, "We have prevailed on key issues in this lawsuit without any allegations or findings of recklessness or fraud. The SEC's request is further evidence of the threat to all cryptocurrency-related companies in the United States."

The breakdown of the fine requested by the SEC is as follows:

Claim for unjust profits: $876 million (approx. JPY 135.6 billion)
Claim for prejudgment interest: $198 million (approx. JPY 30.6 billion)
Civil penalty: $876 million

In response, Ripple emphasized that it has revised the way it sells XRP to institutional investors, and argued that the penalty proposed by the SEC is too large.

Then, taking into consideration the case, it said that the civil penalty should be treated as a penalty of $10 million (approx. JPY 1.5 billion) or less, excluding the claim for unjust profits and prejudgment interest.

Reference:Document,Mr. Aldeloti X
Image: Shutterstock

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