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- Ripple is wildly refuting a $2 Billion fine proposed by the SEC for alleged unregistered securities offerings of XRP tokens.
- Despite the heated legal battle which might take years to resolve, Ripple’s CEO is optimistic that the legal could come to a halt by September 19.
The ongoing legal battle between Ripple and the U S Securities and Exchange Commission (SEC) has reached a crucial phase. Ripple is wildly contesting the SEC’s proposed $2 billion penalty for alleged unregistered securities offerings of XRP tokens. Alternatively, Ripple is advocating for a significantly reduced fine.
The legal battle dates back three years with the main issue being that Ripple conducted an unregistered securities offering by selling XRP tokens.
Earlier this year, the SEC put forward a $2 Billion Fine against the blockchain company for the alleged offenses. In opposition to the proposed fine, Ripple via chief legal officer, Stuart Alderoty, intensely argued proposing a maximum fine of $10 million.
In their defense, the Ripple’s legal team reinforced their armored state drawing comparisons to the penalties charged on TerraForm Labs. Additionally, they highlighted the significant difference between the two cases asserting that there were no direct fraud allegations against the blockchain company. Rather, the legal team agreed to pay penalties which comprised $4.47 billion for fraudulent activities, including $3.6 billion in disgorgement, $466 million in prejudgment interest, and a $420 million civil penalty.
For their defense, Ripple’s attorney highlighted that the SEC usually recommends civil penalties ranging from 0.6% to 1.8% of a defendant’s gross revenue, a case which should apply to Ripple as well. Additionally, the defense team stated that an “appropriate fine” should not be more than $10 million.
The complex nature of the legal battle could see the case going on for years. Ripple CEO Brad Garlingouse remains optimistic about a near close of the case. As earlier reported by Crypto News Flash, Brad suggested that late September could be the conclusion of the case.
My estimation is sometime before the end of the summer. Somebody asked me about the end of August, but I pointed out that September 21 is the end of the summer,” he recently stated.
Adding to this optimistic outlook, lawyer Jeremy Hogan predicts a potential settlement of $100 million. This positive sentiment is in tandem with the Ripple community especially putting into consideration their three previous victories.
I’m saying that the Judge will order 0 disgorgement but throws the SEC a bone and orders Ripple to pay a $100 million penalty.
These previous victories saw XRP gain a significant price surge suggesting if Ripple would attain the final victory, it could significantly boost the cryptocurrency’s performance.
Despite the ongoing legal frenzy, XRP, at press time was exchanging hands at 0.4902, a 1.26% surge in the last 24 hours. The legal battle is of great significance for both the cryptocurrency market and regulatory frameworks. A favorable ruling for Ripple could not only bolster XRP’s price but also arrange flatware for future regulatory actions.
