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U.S. SEC seeks $2 billion in damages from Ripple Labs in XRP lawsuit

The U.S. Securities and Exchange Commission (SEC) has approached a New York judge seeking a fine of nearly $2 billion against Ripple Labs.

Stuart Alderoty, Chief Legal Officer, Ripple Labs Announce via social media The SEC proposed such a hefty fine, and redacted court documents are expected to be made public on March 26. According to the SEC’s request, it hopes to order Ripple Labs to return US$876 million in earnings, pay US$198 million in prejudgment interest, and US$876 million in civil penalties, totaling approximately US$1.95 billion.

XRP and SEC

The legal battle began in December 2020, when the SEC charged Ripple Labs and two of its companies Executives violated federal securities laws by selling XRP to large investors and the public.However, in a ruling last July, New York Judge Analisa Torres ruled that while Ripple directly sells violations to institutionsthe distribution of XRP through exchanges and algorithmic processes does not violate U.S. regulations.

The SEC’s legal filing advocates a strict stance against similar violations within the cryptocurrency industry, urging courts to send a clear message regarding such violations. Alderoty criticized the SEC’s actions and mentioned that Ripple Labs plans to submit a formal response to the SEC’s motion next month. The SEC emphasized that Ripple’s response must be submitted by April 22, 2024.

XRP is not the only coin targeted by the SEC. Early Ethereum (ETH) advisor Steven Nerayoff recently expressed serious concerns about the SEC’s investigation into Ethereum. He also noted that the prospect of Ethereum exchange-traded funds (ETFs) could face greater scrutiny.

This development follows price predictions suggesting that XRP may soon rise by 25% to regain its previous price of $0.75. The analysis highlights that the coin’s price is close to the 200-day moving average support and could trigger further gains towards the $0.92 mark.

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