SEC Seeks Nearly $2 Billion from Ripple in Latest Legal Brief
The long-running legal battle between the SEC and Ripple Labs has taken a significant turn with the SEC filing a Motion for Remedies and Entry of Final Judgment. This motion outlines the penalties the SEC seeks from Ripple, totaling nearly $2 billion.
Key Points of the SEC’s Motion
- Permanent Injunctions: The SEC seeks permanent injunctions against Ripple to prevent future violations of securities laws, specifically Section 5 of the Securities Act of 1933. This relates to Ripple’s alleged unregistered offerings of XRP in institutional sales.
- Disgorgement and Prejudgment Interest: The SEC is requesting $876,308,712 in disgorgement, representing the profits Ripple allegedly gained through its illegal activities. Additionally, they seek $198,150,940 in prejudgment interest.
- Civil Penalties: The SEC proposes a hefty civil penalty of $876,308,712 to deter Ripple and others from committing similar violations in the future.
SEC’s Arguments
- The SEC highlights the extensive nature of Ripple’s alleged violations, claiming they offered and sold XRP to institutional buyers without proper registration.
- The motion criticizes Ripple’s refusal to take responsibility for its actions, pointing to its mischaracterization of previous court rulings and lack of transparency. The SEC also emphasizes Ripple’s disregard for legal advice warning against selling XRP as an investment.
Potential Impact on XRP
The prospect of a nearly $2 billion penalty has raised concerns about Ripple’s future. Bill Morgan, a Pro-XRP lawyer, highlights the SEC’s claims about selective discounts to institutional investors potentially harming those who didn’t receive them. This could pose legal and reputational risks for Ripple.
The ongoing lawsuit continues to cast a shadow over XRP’s price. While the token recently experienced a price increase, the court’s decision remains a crucial factor in its future price action.
XRP Price Movement and Analyst Predictions
Despite the legal battle, XRP saw a recent price surge, potentially fueled by broader market bullishness. Analyst EGRAG predicts a potential 90% increase for XRP in the near future, followed by a long-term target of $27 by November. However, this bullish outlook is countered by a potential downside scenario of a 30% drop.
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