Ripple Labs has denied the US Securities and Exchange Commission (SEC) seeking a $2 billion penalty for institutional sales of XRP tokens. According to the firm, we are talking about a much smaller amount, and the agency itself is trying to intimidate players in the digital asset market.
According to available information, Ripple Labs filed a motion to dismiss the SEC's lawsuit with claims for $2 billion. Last month, the agency sent documents to the court demanding that these funds be recovered from the company.
The list of claims includes $876 million in compensatory damages, $198 million in interest on the amount mentioned, and another $876 million in civil penalties.
Representatives of Ripple noted that they acknowledged the fact of selling tokens to institutional clients. This happened in July 2023, when the company won a partial victory in its legal battle with the Commission.
However, the company’s lawyers point out that the amount of the civil fine cannot exceed $10 million. At the same time, the company rejected the SEC’s accusations of the ongoing practice of selling XRP to institutions.
“Ripple has publicly acknowledged this decision. It reformatted the way it sold XRP and changed its contracts to avoid the problems identified by this court,” the firm said in a statement.
The head of Ripple's legal department, Stuart Alderoti, emphasized that the SEC's allegations are based on a lost case for the agency. The agency is trying to demonstrate its intention to persecute crypto companies in order to intimidate market participants, he believes.
“In a case with no substantiated allegations (or findings) of recklessness or fraud, and in which Ripple prevailed on key issues, the SEC's demand is just further evidence of its ongoing bullying of the US cryptoasset industry,” Alderoti said.
