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Ripple Faces $2B SEC Fine: Crypto Company Vows To Fight 'Misleading' Charges

Published 25/03/2024, 22:55
Ripple Faces $2B SEC Fine: Crypto Company Vows To Fight 'Misleading' Charges
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Benzinga - Ripple Labs Inc. (CRYPTO: XRP) is at the center of a hefty legal battle, with the U.S. Securities and Exchange Commission (SEC) proposing a staggering $2 billion in fines and penalties against the blockchain company.

This development was disclosed by Ripple’s Chief Legal Officer Stuart Alderoty, who indicated that the official filings would be unveiled to the public on Tuesday, marking another chapter in the prolonged dispute between Ripple and the SEC.

Alderoty expressed his discontent with the SEC’s approach on social media platform X, stating, “Our response will be filed next month, but as we all have seen time and again, this is a regulator that trades in statements that are false, mischaracterized and designed to mislead.

They stayed true to form here. Rather than faithfully apply the law, the SEC remains bent on wanting to punish and intimidate Ripple — and the industry at large.”

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Adding to the company’s defense, Ripple’s CEO Brad Garlinghouse lambasted the regulatory body for its alleged overreach and disregard for legal boundaries, particularly under the leadership of Gary Gensler.

Garlinghouse highlighted several instances where courts have ruled against the SEC in crypto-related cases, emphasizing the criticism the agency has faced for its actions.

“Gensler's SEC has repeatedly acted outside the law — not going unnoticed by Judges admonishing the agency for a ‘gross abuse of the power entrusted to it by Congress’ (DEBT Box case) and for acting without ‘faithful allegiance to the law’ (Ripple case). Let's not also forget Gensler's lack of attention to SBFraud,” Ripple’s CEO voiced on X.

This ongoing legal saga underscores the growing tension between regulatory bodies and the rapidly evolving cryptocurrency sector, with Ripple at the forefront of challenging the SEC’s current regulatory stance.

This topic will be a focal point of discussion at Benzinga’s Benzinga’s Future of Digital Assets conference on Nov. 19.

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Photo: Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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