U.S. SEC seeks $2 billion in fines and penalties in XRP case

BlockBeats news, on March 26, Ripple CEO Brad Garlinghouse confirmed on social media that the U.S. Securities and Exchange Commission (SEC) will seek $2 billion in fines and penalties in its legal proceedings against the cryptocurrency XRP. The regulator is scheduled to issue a public brief on Tuesday, and Ripple's chief legal officer Stuart Alderoty said the company will submit a response next month. Garlinghouse stressed: "The SEC plans to ask a judge to impose a $2 billion fine in a case that has no allegation (let alone a finding) of fraud or reckless conduct. There is no precedent for this. We will continue to expose the SEC's true colors in our response. .” The SEC sued Ripple in 2020, claiming the company violated its rules by selling digital tokens to raise funds without registering them as securities. Last July, a federal judge ruled that XRP sales to retail investors on exchanges did not constitute investment contracts.