SEC Seeks Final Judgment against Ripple Labs with $2B Fine in XRP Lawsuit

On Mar 26, 2024 at 11:12 am UTC by · 3 mins read

The SEC has filed the motion of remedies for the final judgement in the XRP case. Analyst say that Ripple’s decision of selling XRP at discount to big institutions could hurt the XRP price.

In an interesting development on Monday, March 25, the US Securities and Exchange Commission (SEC) requested the final judgment against Ripple Labs in the XRP lawsuit, along with $2 billion in civil penalties. Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty were the first ones to report on this development.

Much recently, the US SEC lodged a motion requesting a remedies package from Ripple for its violation of securities laws concerning XRP sales to institutional investors.

Commenting on this development, Ripple CLO Alderoty stated that they would make the filings available to the public on Tuesday, March 26. However, Ripple Labs will be filing the response next month. In a short thread on the X platform, Alderoty wrote:

“Our response will be filed next month, but as we all have seen time and again, this is a regulator that trades in statements that are false, mischaracterized and designed to mislead. They stayed true to form here. Rather than faithfully apply the law, the SEC remains bent on wanting to punish and intimidate Ripple – and the industry at large.”

Furthermore, Ripple CEO Brad Garlinghouse criticized SEC chair Gary Gensler for acting outside the law. He also cited SEC’s recently lost DEBT Box case while calling out the regulator for ‘gross abuse of the power entrusted to it by Congress’. He also said that they would continue to expose the SEC for their unnecessary arm-twisting actions in the upcoming hearings.

XRP Price Remains Firm but Faces Challenges Ahead

Ripple’s native cryptocurrency XRP has been showing little to no movement. While the rest of the altcoin space is buzzing with 5-8% gains, the XRP’s price is up by a mere 2.24% in the last 24 hours trading at $0.6459.

US-based attorney Fred Rispoli shared his insights stating that Ripple’s discounted sales to institutional buyers could be the reason for the lower price of XRP. Rispoli observations come while discussing the latest developments in the ongoing legal battle between Ripple and the SEC.

The SEC’s argument aims to demonstrate that Ripple’s sales have harmed investors, particularly those who acquired XRP at higher prices. Expressing his concern, Rispoli added that there could be repercussions of the company’s actions on its reputation as well as the XRP price. He also added that Ripple’s past practice of selling XRP to institutions at a discounted price could be the reason behind the low XRP price.

He added that whenever the XRP price surges, institutions would be keen on selling their holdings while adding to the selling pressure. In this case, they could dump their XRP on retail investors that would source the liquidity.

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