- The SEC requested Judge Analisa Torres to authorize the fine.
- Concerning sales to institutional investors directly, the SEC has suggested a final ruling.
The U.S SEC has asked a New York court to consider the “severity” of Ripple Labs’ misbehavior as it seeks a settlement of almost $2 billion from the company.
The SEC requested Judge Analisa Torres to authorize the fine. It comprises $876 million in disgorgement, $198 million in prejudgment interest, and a civil penalty of $876 million—in a proposed final judgment that was filed on Monday.
The agency said in the court filing:
“The SEC asks the Court to consider the severity and pervasiveness of Ripple’s misconduct, and the need to send a strong deterrent message to Ripple and others considering whether to raise capital by selling securities to the public in unregistered transactions involving crypto assets.”
Illegal Sales of XRP
After the SEC accused Ripple of generating $1.3 billion via the sale of XRP, which it claims is an unregistered securities, the duo have been engaged in a protracted legal battle.
Because Ripple used a blind bid method for certain of its XRP transactions last year, Judge Torres determined that the sales did not break securities laws. On the other hand, she determined that further token sales to institutional investors constituted securities.
Concerning sales to institutional investors directly, the SEC has suggested a final ruling. The SEC has said that almost $1 billion was obtained by Ripple via “its illegal sales of XRP.” It was Monday that Ripple’s top brass first announced the $2 billion in penalties and fines the SEC had suggested. In its court statement, the SEC said that Ripple had until April 22 to respond.
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