Stuart Alderoty, chief legal officer of Ripple Labs, has stated that the company anticipates paying a $2 billion fine to the US Securities and Exchange Commission (SEC). He addressed the matter on March 25 by adding a post on X in which he stated:
‘The SEC is requesting $2 billion in fines and penalties from the Judge, as you will see when their brief is made public tomorrow.’
A big victory for Ripple Labs occurred last year, when a judge ruled that programmed XRP sales to individual investors via cryptocurrencycurrency exchanges are not considered securities transactions. The judge did not, however, definitively state that the $728 million in sales contracts between institutional investors and other clients were unregistered securities.
However, this information will not be made public until the SEC responds. In 2020, the SEC filed a lawsuit against Ripple to prove that purchasing and trading XRP is the same as buying and selling unregistered securities. Following its recent launch, ripple’s native digital currency, XRP, has risen to sixth place among all cryptocurrencycurrencies in terms of market value.
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