The U.S. Securities Exchange Commission (SEC) is reminding the federal court of violations of securities laws by Ripple Labs and asking the judge to issue a final ruling against Ripple. This decision includes permanent injunctions, damages and prejudicial interest, and civil penalties of approximately $2 billion. Ripple executives and the crypto community criticized the SEC for implausible statements in the resolutions summary and other documents. Here are the latest developments in the Ripple case and the reaction of the community…
US SEC seeks final decision on Ripple case
The public version of the SEC’s summary of the remedies was filed with the court after redactions. The arguments are primarily based on violations of Section 5 of the Securities Act of 1933 and unregistered offers of XRP in institutional sales. The argument is based on a summary judgment decision by Judge Analisa Torres last July 13; This means that the SEC is not alleging any fraud and is just targeting Ripple’s growth despite a lawsuit.
The SEC wants Judge Analisa Torres to issue a proposed order in its favor and force Ripple to pay a “disgorgement” of $876,308,712. It also seeks prejudicial interest in the amount of $198,150,940 and civil penalties in the amount of $876,308,712. The SEC claims that Ripple’s post-complaint XRP sales were mostly made to institutions, and that the sales harmed investors because the company did not even disclose discounts to institutional investors. Moreover, the SEC argues that Ripple continues to defy the law, mischaracterize the decision, and knowingly evade securities laws.
Ripple CEO and CLO lash out at SEC
Ripple CEO Brad Garlinghouse said the $2 billion fine was “unreasonable based on allegations (let alone findings) of fraud or recklessness.” “There is absolutely no precedent for this.” Garlinghouse instead emphasizes that the SEC abused its authority in the DEBT Box case and acted without fidelity to the law in the Ripple case.
cryptokoin.com As we reported, Ripple will submit its objection to the court on April 22. The SEC will file its response on May 6 under the extended deadlines approved by Judge Torres. Ripple CLO Stuart Alderoty stated that the SEC only wants to punish and intimidate Ripple and the entire industry instead of enforcing the law. Alderoty said:
Our response will be filed next month, but as we have all seen time and time again, this is a regulator trading in statements that are false, mischaracterized and designed to mislead. They stayed true to their form here too.
XRP price remains strong
Pro-XRP advocates argue that the summary of solutions is nothing more than expected. But lawyers have expressed some concerns about ODL sales and negotiations. Attorneys Bill Morgan and James Farrell said Judge Torres classified ODL sales into category 1, along with other sales to institutions, and that Ripple sales have been made to ODL customers since the case. Advocates hope Ripple changes its business practices based on Torres’ ruling, otherwise the SEC will gain the upper hand.
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