Ripple contends that the SEC’s proposed $2 billion penalty is excessive, suggesting a fine of no more than $10 million.The legal spat between Ripple and the US Securities and Exchange Commission has been ongoing for more than three years, recently entering its trial phase. The lawsuit resolvesthe regulator’s accusations that the company and some of its executives conducted an unregistered securities offering by selling its XRP token.
In addition, the lawyers noted that a jury in Manhattan found Terraform Labs and its co-founder Do Kwon liable on civil charges and “recklessly orchestrating one of the largest securities frauds” in US history. In contrast, they added, there are no direct allegations of fraud in the case between Ripple and the SEC.Despite being in its trial stage, the legal battle may drag on for years due to the complexity of the process and possible delays and appeals from both parties.
“I’m saying that the Judge will order 0 disgorgement but throws the SEC a bone and orders Ripple to pay a $100 million penalty.”