SEC Demands $2 Billion in Penalties from Ripple
The SEC’s complaint outlines that Ripple raised funds through these unregistered securities offerings in the US and globally. It claims the firm distributed billions of XRP in exchange for non-financial benefits, such as labor and market-making services. This controversial approach to financing has put Ripple in the regulatory spotlight.
“Our response will be filed next month, but as we all have seen time and again, this is a regulator that trades in statements that are false, mischaracterized, and designed to mislead. They stayed true to form here. Rather than faithfully apply the law, the SEC remains bent on wanting to punish and intimidate Ripple – and the industry at large,” Ripple Chief Legal Officer Stuart Alderoty said.
The SEC’s actions reflect the stringent regulatory environment governing cryptocurrencies and the agency’s commitment to enforcing existing securities laws.
This is a developing story…
