SEC Stands Firm on Hefty $2 Billion Fine for Ripple

XRP Money

The SEC has said Ripple should pay close to $2 billion in fines for selling
XRP to institutional investors. In its opposition motion filed last month, Ripple argued that the figure should be closer to $10 million.

The SEC noted its proposed penalty was large but said Ripple’s proposed penalty would be a “slap on the wrist” in a filing posted on Tuesday.

“To the contrary, it would encourage other crypto asset issuers to violate Section 5 by making it a remarkably lucrative endeavor, and thus deprive investors the disclosures Congress mandates, as a mere ‘cost of doing business,’” the SEC’s lawyers said.

The SEC and Ripple have been battling in court for years after the SEC accused the firm of raising $1.3 billion through the sale of XRP, which it says is an unregistered security.

Last year, Judge Analisa Torres of New York ruled that some of Ripple’s sales, called programmatic, of XRP did not violate securities laws because of a blind bid process in place for them. She did, however, rule that other direct sales of the token to institutional investors were securities.

The SEC also criticized Ripple’s assurances to the court that it would not again violate the law in the future.

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