- Ripple’s ongoing legal battle with the SEC sees a significant reduction in penalties.
- The SEC’s original demand of $2 billion has been lowered to $102 million.
Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, has highlighted a significant shift in the ongoing lawsuit between Ripple Labs and the US Securities and Exchange Commission (SEC). The SEC has dropped its initial $2 billion demand to $102 million. Alderoty criticized the SEC for its excessive fines and emphasized that Judge Torres had ruled XRP is not a security.
As discussed in the CNF YouTube video, Alderoty pointed out that there are no victims needing compensation and noted Ripple’s continued success despite the legal challenges. This update provides some relief as the final decision on the remedy payment is awaited, with a potential settlement now in the $100 million range.
Ripple’s Legal Stance
In his tweet, Stuart Alderoty, Chief Legal Officer of Ripple, boldly expressed his opinion, stating,
The SEC is raging. Ripple defended itself – agreeing to nothing.
He highlighted that the court clarified XRP is not a security, and there are no victims to compensate. Despite the legal battle, Ripple continues to thrive. The SEC’s initial demand for $2 billion has now been abandoned.
The @SEC is raging. Ripple defended itself – “agreeing to nothing.” The court gave clarity that XRP is not a security. There are no “victims” to compensate. And worst of all for the @SEC, Ripple is thriving. But at least @SEC seems to have abandoned its absurd demand for $2B. https://t.co/KVSkB9OqlH
— Stuart Alderoty (@s_alderoty) June 15, 2024
The Impact of the Settlement Announcement
According to circulated news, the heated dispute culminated in a settlement announcement between the SEC and bankrupt Terraform Labs, agreeing on a $4.47 billion settlement. However, current analysis shows that Terraform Labs might be unable to pay this amount. The regulator posited that the firm has not agreed to any penalty.
The SEC maintains that Ripple deserves to pay at least $102.6 million, beyond the $10 million it is arguing for. Based on this, Ripple’s CLO expressed relief, adding that the SEC seems to have abandoned its absurd demand for $2 billion.
XRP’s Market Reaction
Following CNF’s recent update on the SEC vs. Ripple case, XRP’s gains were the highest among the top 100 coins, four times higher than those of second-placed TRON, which rose by 1.56%. At the time of writing, this positive growth continues with Ripple (XRP) trading at $0.4982, an increase of 0.12% in the past day and 2.51% in the past week. See the overall XRP price chart below for an overview.
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