According to Lee Hepner, Senior Legal Counsel at the American Economic Liberties Project, Ripple is in a precarious position after the U.S. Securities and Exchange Commission (SEC) filed its request for sanctions and fines of approximately $2 billion against the company.
Hepner described the situation as, “XRP may not be fully baked yet, but it’s in the toaster.” He labeled the SEC proposal as “explosive,” as it details the continued “reckless disregard for the law” by the company even after being found liable by a federal court.
The SEC pointed out that Ripple continued its unlawful offers and sales of unregistered securities to investors even after the SEC filed a lawsuit against the company in December 2020. Moreover, Ripple did not cease these activities even after being found liable by the court.
Last year, the court ruled that the San Francisco-based company violated federal securities laws by directly selling the controversial XRP token to institutional investors. However, the ruling stated that secondary sales do not constitute an unregistered offering.
Hepner viewed the proposal as a “convincing and comprehensive narrative of Ripple’s misconduct and refusal to take responsibility.”
The SEC argued that the hefty fines and penalties are necessary to deter future violations, compensate affected investors, and punish Ripple for its unlawful sales of XRP. Key factors supporting these remedies include Ripple’s history of violations, reckless behavior, and the interconnected nature of its offenses.
Meanwhile, Stuart Alderoty, Ripple’s Chief Legal Officer, criticized the SEC for being “hell-bent on punishing and intimidating” his company, citing recent setbacks the SEC faced in court.
Simultaneously, Chris Larsen, Ripple’s co-founder, rushed to characterize the SEC as “troubled.”
Ripple is expected to provide its response to the SEC’s $2 billion request in April.
Important Notice: Disclaimer Regarding Financial Advice
The information presented in this article is intended solely for informational purposes and should not be considered as financial advice. Coinshiba.online disclaims any responsibility for investment decisions made by individuals relying on the information provided herein. It is highly recommended to consult with a qualified professional or financial advisor before making any investment decisions. Your financial well-being is crucial, and seeking expert guidance ensures that your investment choices align with your individual financial goals and risk tolerance.
