SEC seeks $2 billion judgment against the cryptocurrency issuer Ripple Labs

Ripple Labs is accused of violating federal securities laws by selling XRP cryptocurrency. The SEC argues that such abuses in the crypto asset space should not be tolerated. Ripple Labs plans to file their response next month.

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The U.S. Securities and Exchange Commission (SEC) is reportedly seeking a $2 billion judgment against Ripple Labs in their ongoing legal battle. The SEC filed a motion for judgment and remedies last Friday, which is currently sealed. However, Ripple Labs’ chief legal officer, Stuart Alderoty, revealed on social media that redacted versions of the documents will be made public by Tuesday, 26th March.

The requested judgment, if granted, would mark the conclusion of this phase of the multi-year legal battle between Ripple Labs and the SEC. The conflict started in December 2020 when the SEC filed a lawsuit against Ripple Labs and its executives, claiming that they violated federal securities laws by selling XRP cryptocurrency to both institutional and retail customers.

In a previous ruling last July, New York Judge Analisa Torres determined that the sale of XRP on exchanges and through algorithms did not breach U.S. law, only Ripple’s institutional sales of XRP did. The SEC’s recent motion emphasizes the need for the court to consider the ease with which actors in the crypto asset space can engage in similar conduct to Ripple’s. They argue that a strong message must be sent to deter such abuses.

Ripple Labs’ chief legal officer, Stuart Alderoty, criticized the SEC and stated that the company plans to file its response to the SEC’s motion next month. The SEC filing specifies that Ripple Labs’ response must be filed no later than 22nd April 2024.