The U.S. Securities and Exchange Commission (SEC) wants to urge a New York judge to punish the business that created the XRP Ledger blockchain around $2 billion. Ripple Labs filed an opposition to this plan on Monday.
“The SEC should be denied an injunction, disgorgement, and pre-judgment interest, and a civil penalty of no more than $10 million should be imposed by the Court,” the filing stated.
The SEC’s request sought a $1.95 billion judgement against Ripple Labs, which would include $876 million in disgorgement, $198 million in prejudgment interest, and an additional $876 million in civil penalties. Although the SEC had claimed that selling XRP on exchanges and through algorithms also broke the law, the court determined that Ripple had broken federal securities laws by selling the cryptocurrency institutionally.
The attorneys for Ripple said, “The SEC’s remedial requests are more evidence of the administrative overreach that has beset this case.” “The agency presents itself as though it has proven risky behaviour and has won hands-down. It hasn’t taken any action. The government additionally requests a separate penalty that is greater than 20 times the amount it has received from any other defendant or respondent in a case involving digital assets, as well as disgorgement, which is prohibited by governing Supreme Court and Circuit precedent.
Furthermore, the business claimed it had no gains to disgorge in a line that omitted Ripple’s income tax payments, losses, and revenue from institutional sales.