Ripple CLO Says US SEC Has Abandoned Its Absurd Demand for $2B
After a dramatic week in the Ripple Labs versus US SEC lawsuit, the blockchain payments firm’s CLO Stuart Alderoty has shared a new take on the latest filing from the regulator.
Ripple Vs SEC Lawsuit: The Banter Over the Week
The drama started this week with the settlement announcement between the regulator and bankrupt Terraform Labs. The duo agreed on a $4.47 billion settlement, a sum current analysis shows the firm might be unable to pay.
Swinging on the news, Ripple Labs filed a notice of Supplemental Authority to demand the court’s rejection of the fine. Ripple Labs argued that the Gary Gensler-led SEC is known to levy fines that are far from reality. Beyond this, the blockchain payments firm reiterated that the $2 billion the SEC is demanding from it is too huge, compared to the volume of trade involved in the lawsuit.
The SEC has filed its opposition to this supplemental notice with a diverse argument. First, it noted that it charged just $4.47 billion in settlement in consideration for Terraform Labs’ bankruptcy.
It was this filing that the Ripple CLO jumped on, noting the SEC’s notion that Ripple “agreeing to nothing” is wrong. Alderoty recalled that Judge Analisa Torres ruled that XRP is not a security last year. In addition, he noted that in the Ripple Labs’ XRP sales, there were no victims.
The SEC argued that it chose a more relaxed settlement with Terraform Labs because the firm was closing its business. To Alderoty, this shows bad faith from the SEC who clearly have issues with Ripple Labs’ thriving business.
$2 Billion Fine Subtly Struck Out
One thing that caught the attention of Stuart Alderoty the most is the claims the SEC made in its response to Ripple Labs’ filing. The regulator posited that the firm has not agreed to any penalty. The SEC said Ripple deserves to pay at least $102.6 million other than the $10 million it is arguing.
Based on this, the Ripple CLO expressed relief, adding that it “seems to have abandoned its absurd demand for $2B.”
The @SEC is raging. Ripple defended itself – “agreeing to nothing.” The court gave clarity that XRP is not a security. There are no “victims” to compensate. And worst of all for the @SEC, Ripple is thriving. But at least @SEC seems to have abandoned its absurd demand for $2B. https://t.co/KVSkB9OqlH
— Stuart Alderoty (@s_alderoty) June 15, 2024
As the market await the final verdict regarding the remedies, that a payment in the $100 million range is now in view comes off as relief to many.
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Filed under: News - @ June 16, 2024 5:26 pm