The U.S. Securities and Exchange Commission responded to Ripple Labs’ supplemental authority in opposition to SEC’s remedies request. The SEC and ex-SEC lawyers challenged Ripple and claimed that settlements are not comparable in penalty size to litigated cases. The updates sparked debate on potential remedies and speculation of whether XRP price to fall further.
SEC Filing Intensifies Legal Woes For Ripple
The U.S. SEC challenges Ripple stating that the firm made inapt citations to settlements and calculation of penalties based on defendants’ gross sales or profit. XRP proponent Sherrie asserts that the SEC made a strong point in the filing that Terraform Labs is in bankruptcy, divesting all its crypto and replacing key board members. “All in all, a significant difference in situation.” she added.
The SEC also argued that Ripple has failed to agree on a settlement, in fact, Ripple is agreeing to nothing. The agency also shared considerations for large settlement in Terraform lawsuit.
“Resolutions where cash-strapped defendants agree to return funds to victims quickly and voluntarily cease their violative conduct are unhelpful to deciding the amount of penalties necessary to punish and deter an undisputedly wealthy defendant who fails to recognize or acknowledge its violation of the securities laws, and who continues to enrich itself by engaging in conduct awfully similar to the conduct that resulted in the violation in the first place.”
U.S. SEC seeks final judgment against Ripple to pay $876,308,712 in disgorgement, $198,150,940 in prejudgment interest, and $876,308,712 civil penalty. However, Ripple claimed they are only required to pay a civil penalty of not exceeding $10 million. In the last filing, the SEC also cleared that even if the ratio is applied the actual penalty amount comes much higher at $102.6 million.
Also Read: XRP Vs. SEC Lawsuit: SEC Says Ripple ODL Sales Reflects Past Violations
Ex-SEC Lawyers Challenge Ripple
Former SEC lawyers James Farrell and Marc Fagel have earlier argued that the SEC may appeal Judge Torres’ summary judgment. In the latest posts on X, they argue that Judge Torres might need to decide on an injunction that could impact Ripple’s XRP ODL business massively.
Farrell believes the SEC wants to obey the law even after Ripple claimed that they have changed their XRP ODL sales after the court warned. “Torres can say here’s injunction and if your current sales are legal no harm Ripple”. Ripple wants her to decide so no sword over their head,” he added.
2/ public gauge just how serious/large the fraud was. Plus, if there is a $10B fraud and the SEC only seeks a $10M penalty because that’s all the money that’s left, the SEC gets blasted for it; better to assess an uncollectible $10B PENALTY.)
— Marc Fagel (@Marc_Fagel) June 15, 2024
XRP Price to Fall to $0.42?
XRP price is trading near the key support level, well below the 50-day, 100-day, and 200-day EMA and confirms the bearish trend. If the crypto market fails to rebound due to selling pressure on Bitcoin price amid miner capitulation, XRP XRP price risks falling further to break the channel downside to the next support level at $0.42 (black line).
XRP price trades at $0.48, up nearly $0.40% in the last 24 hours. The 24-hour high and low are $0.4802 and $0.4647, respectively. The trading volume dropped further in the last 24 hours.
Also Read: Australia Spot Bitcoin ETF To Start Trading On ASX Stock Exchange
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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.
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