The post Ripple vs SEC Lawsuit: Tensions Rise as Ripple Prepares Response to $2 Billion Penalty appeared first on Coinpedia Fintech News
The ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) is entering a pivotal week, with Ripple’s defense team gearing up to file its opposition brief. With the SEC seeking final judgment and nearly $2 billion in penalties, Ripple is set to submit its sealed response on April 22, followed by a redacted version likely to be made public shortly after.
SEC Seeks $2 Bln In Fine
In the latest development, the SEC has outlined its proposed remedies in a briefing, seeking disgorgement of profits derived from XRP sales and civil penalties against Ripple. The SEC’s proposed remedies include a request for Ripple to pay $876,308,712 in disgorgement, $198,150,940 in prejudgment interest, and a civil penalty of $876,308,712, totaling approximately $2 billion.
However, these penalties stem from allegations of violating Section 5 of the Securities Act of 1933 and conducting unregistered offerings of XRP in institutional sales.
Ripple’s Response to US SEC
On April 22, Ripple is expected to file a public redacted version of the opposition brief, along with supporting declarations and exhibits. However, if the materials contain confidential information designated by the SEC, they may be filed under seal.
As Ripple prepares to file its opposition brief, speculation abounds regarding the content and strategy of its response. This filing will include supporting declarations and exhibits. Any materials marked confidential by the SEC will be sealed. Additionally, Ripple may release a public version of exhibits, following an earlier protective order.
Ripple may leverage recent legal victories in the Aron Govil case, which highlighted that the SEC isn’t entitled to disgorgement if buyers incur no financial loss. Additionally, Ripple could reference Coinbase’s clarification on secondary market sales not being securities, potentially strengthening its case further.
SEC’s Submission of Reply Brief
On May 6, the SEC is scheduled to submit its reply brief, which will be filed under seal. Additionally, parties involved in the case, as well as third parties, have until May 20 to file letter motions and opposition related to sealing details contained in the filings.
XRP Price Analysis
Amidst the legal proceedings, XRP’s price remains resilient, trading over $0.54 and recording a 5% increase in the last 24 hours. With positive market sentiment, XRP futures and options open interests are on the rise, indicating potential bullish momentum in the coming days.
from Coinpedia Fintech News https://ift.tt/SfaeZEk
via IFTTT