Ripple, in a bold legal maneuver, contests the SEC's demand for a hefty $2 billion penalty by proposing a modest $10 million fine. The move follows a court ruling against Ripple for selling its cryptocurrency, XRP, to institutional investors without proper registration.
Ripple's Counterproposal
In a detailed 186-page document filed late Monday, Ripple pushes back against the SEC's severe penalties. The company acknowledges the court's ruling and has adjusted its business practices accordingly, emphasizing its compliance with legal standards.
Ripple Challenges SEC's Disgorgement Demand with Lack of Investor Harm Evidence
Ripple disputes the SEC's call for disgorgement, citing a lack of evidence of financial harm to investors from its actions. The company asserts that there's no justification for disgorgement, as the SEC hasn't proven any financial damage to investors.
Ripple argues for a significantly lower amount in civil penalties, proposing $10 million, which they argue aligns with precedents and the nature of the infringement. They cite similar legal cases to oppose the excessive fines proposed by the SEC.
The XRP lawyer community backs Ripple's defense, viewing its arguments as strong against the SEC's demands. Prominent pro-XRP lawyer Bill Morgan agrees with Ripple's stance against disgorgement.
Anticipation of Judge's Decision
Legal experts anticipate a swift decision from Judge Torres, possibly within 60 to 90 days from the final briefing on May 6. Critics like Jeremy Hogan criticize the SEC's approach in this pivotal legal standoff between Ripple and the SEC, which could impact cryptocurrency regulation in the U.S.
Binance's $4 Billion Settlement: CEO Pleads Guilty, Company Admits Regulatory Violations
Before once again,Binance Holdings Limited (Binance), operator of the world's largest cryptocurrency exchange, pleaded guilty to multiple federal charges, including violations related to the Bank Secrecy Act (BSA), unlicensed money transmitting, and sanctions breaches. The settlement amounts to over $4 billion and includes criminal charges against Binance's CEO, Changpeng Zhao.
Binance admitted to flouting regulations, including failure to register as a money transmitting business and violating the International Emergency Economic Powers Act (IEEPA). CEO Changpeng Zhao pleaded guilty to neglecting an effective anti-money laundering (AML) program and has resigned from his position.
As part of the plea agreement, Binance has agreed to forfeit $2,510,650,588 and to pay a criminal fine of $1,805,475,575 for a total financial penalty of $4,316,126,163. Binance has also agreed to retain an independent compliance monitor for three years and remediate and enhance their anti-money laundering and sanctions compliance programs. Binance separately has also reached agreements with the CFTC, FinCEN, and OFAC, and the Department will credit approximately $1.8 billion toward those resolutions.
At the time of writing, the price of XRP is $0.544.