Ripple challenges $2B SEC fine, arguing for a maximum penalty of $10M

Ripple, a cross-border payment protocol, has challenged the United States Securities and Exchange Commission (SEC) over its request for a $2 billion fine against the company. In a recent filing, Ripple Labs opposed the SEC’s request to a federal judge, urging the court to reject the injunction, disgorgement, and pre-judgment interest sought by the SEC. Instead, Ripple argued for a more reasonable civil penalty, not exceeding $10 million. The SEC had requested $876 million in disgorgement, $198 million in pre-judgment interest, and an additional $876 million in civil penalties, totaling almost $2 billion. Ripple deemed this amount to be “unreasonable” and stated that $10 million would be a more appropriate reflection of their actual revenues. The filing also emphasized that this amount would be proportionate to similar cases in the digital-asset space where no culpable mental state or substantial harm to others was involved. Ripple’s chief legal officer, Stuart Alderoty, described the SEC’s actions as part of its “ongoing intimidation against all of crypto” in the United States. He emphasized that the case had no allegations or findings of recklessness or fraud and hoped for a fair approach from the judge in the final phase of the case.