[NEWS] SEC seeks $2 billion fine against Ripple, CEO Garlinghouse and others reveal

Stuart Alderoty, chief legal officer of Ripple, said on the 25th that the SEC (U.S. Securities and Exchange Commission) has asked the court to impose a $2 billion fine on the company in a series of lawsuits over XRP securities issues.

According to Alderoty, Ripple plans to file a response within the next month. He then criticized the SEC's allegations as "trading on false, misleading, and misleading statements."

He added that the SEC is not faithfully following U.S. law, but is "eager to punish and intimidate Ripple and the entire cryptocurrency industry." Alderoty said, "I trust the court to rule fairly."

Victory in part of lawsuit last year

Last July, the court ruled that XRP does not qualify as a security when sold to general investors in a lawsuit between Ripple and the SEC. On the other hand, it was determined that XRP is a security when sold to institutional investors, but the content was positively received by the industry as a substantial victory for Ripple.

A series of legal arguments related to the lawsuit proceedings were held for several months afterwards, and there was much speculation about the conditions for Ripple to pay the fine for some of the laws it violated.

The amount of $2 billion requested by the SEC this time was not unexpected by analysts, but lawyer John Deaton, known as a supporter of XRP, and others said that "the amount the company should pay should be lower."

In addition, Ripple CEO Brad Garlinghouse also criticized the SEC, saying that "there is no precedent for this kind of thing." He indicated his intention to fight back, saying that he would continue to "unmask the SEC."

Reference:Aldeloti X,Garlinghouse X
Image: Shutterstock

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