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Ripple CEO Discloses SEC’s Intent to Request $2 Billion Fine from Judge
- The multi-year court case between Ripple and the SEC may be drawing closer to a conclusion, with the SEC requesting Ripple pay USD $2B in fines.
- Ripple’s CEO suggested that such an absurdly high figure was unprecedented, and that his company was being made an example out of.
- The crypto community echoed this sentiment, with many believing the SEC were trying to send a message to the industry.
It’s almost unfathomable to think this saga began nearly four years ago, in December 2020, when the Securities and Exchange Commission officially sued Ripple. The lengthy legal battle that ensued has been an up-and-down affair, with many positives for the crypto industry – but many setbacks, too.
Related: SEC’s Billion-Dollar Fraud Trial Commences, As Do Kwon Leaves Prison
While a judge ruling that XRP by itself was not a security was a landmark moment for the Ripple team, it was only one win in a best-of-seven series. And according to Ripple CEO Brad Garlinghouse, the final result is looking a little expensive.
“No Precedent” for Such a Fine, as Community Reacts
In his tweet, Garlinghouse mentioned that the SEC was requesting the judge hand down a $2B (AUD $3.06B) fine to Ripple. He noted that this level of fine was unprecedented for any industry – especially considering the allegations of fraud against his company had been tenuous at best.
An actual example of fraud, the block.one startup, raised billions of dollars for its initial coin offering (ICO) without actually having a working product. The SEC settled with this company for a hefty, but significantly lesser sum, of USD $24M (AUD $36.69M).
The SEC is already at odds with the crypto industry thanks to its hardline stance on digital assets, while taking on a “regulation-by-enforcement” policy that throttles innovation. So naturally, the reaction to Garlinghouse’s tweet was one of outrage.
Some suggested that the reason for such a high fine was Gary Gensler’s way of sending a message to the crypto industry.
Related: Bitcoin Rebounds to $70K: Sharks and Whales Ignite Buying Frenzy
That’s all well and good in a mafia movie but, Gary – this is real life. Threatening the crypto industry with billion-dollar fines while giving fraudulent players in TradFi slaps on the wrist seems a little unfair, but hey. If it’s to send a message, then it’s totally fine!
(Sorry Gary. Please don’t sue me)
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
