Hot development in Ripple case: SEC demands a final decision!

Ripple case

The US Securities Exchange Commission (SEC) has filed a complaint in federal court alleging violations of securities laws by Ripple Labs. The SEC asked the court to enter a final judgment against Ripple. The contents of this judgment include permanent injunctions, damages and prejudgment interest, and civil penalties of approximately $2 billion. Ripple executives and the crypto community criticized the SEC's unreasonable statements in the summary and other documents related to the resolutions. Recent developments and community reaction are among the latest developments in the Ripple case. It is stated that the SEC's summary of remedies was submitted to the court after redactions were made. The SEC's arguments are based on violations of Section 5 of the Securities Act of 1933 and unregistered XRP offerings in institutional sales.

The SEC's argument is based on Judge Analisa Torres' summary judgment ruling last July 13, which means that the SEC is not alleging any fraud and is targeting Ripple's growth despite only one lawsuit.

The SEC wants Judge Analisa Torres to grant a proposed order in its favor and force Ripple to pay "disgorgement" in the amount of $876,308,712. It also seeks prejudgment interest of $198,150,940 and a civil penalty of $876,308,712. The SEC alleges that Ripple's post-complaint XRP sales were mostly 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 flout the law, mischaracterize the decision, and willfully evade securities law.

Ripple CEO and CLO blasts 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." Instead, Garlinghouse emphasizes that the SEC abused its authority in the DEBT Box case and acted without fidelity to the law in the Ripple case.

As we reported as Kriptokoin.com, Ripple will submit its objection to the court on April 22nd. The SEC will file its response on May 6, pursuant to 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.

XRP Price Remains Strong

XRP proponent lawyers claim that there is nothing different from what was expected in the summary about the solutions. However, the lawyers raised some concerns about ODL sales and marketing. Attorneys Bill Morgan and James Farrell noted that Judge Torres classified ODL sales into category 1, along with sales to other institutions, and that Ripple has been selling to ODL customers since the case. The lawyers hope Ripple will change its business practices based on Torres' ruling, otherwise the SEC will prevail.