Ripple Contests SEC's $2 Billion Fine, Advocates for $10 Million Penalty

By: Eliza Bennet

Disagreeing with the Securities and Exchange Commission's (SEC) demand for nearly $2 billion in fines, cryptocurrency company Ripple has suggested a different approach. Through a court filing on April 22, Ripple has proposed a civil penalty not exceeding $10 million.

As part of the SEC's proposed remedies for Ripple's violation of securities laws, the organization demanded nearly $2 billion, composed of disgorgement, prejudgment interest, and a civil penalty. Ripple argues that this punishment is excessive and that the SEC's request exceeds by more than 20 times what it has obtained from any other defendant or respondent in a digital-asset case.

According to Ripple's Chief Legal Officer, Stuart Alderoty, 'there were no allegations of recklessness or fraud' in the case. Consequently, the company made a counteroffer, asking the court to reduce the financial penalty to no more than $10 million. The company insists it has changed the way it sells XRP and altered its contracts to avoid any future violations.

Ripple's opposition to the hefty penalty is a part of the ongoing legal battle with the SEC. The case, which is far from over, will likely hinge on the court's final decision on the 'appropriate remedy' for Ripple's alleged violation of securities laws. The disagreement underscores the broader conflict between cryptocurrency companies and regulators within the United States.