Ripple asks court to reject SEC’s $2b claims

Ripple Labs rejected the U.S. SEC’s request to recover $2 billion from the company for institutional sales of XRP tokens.

Ripple’s lawsuit states that the amount involved is much smaller and that the agency is trying to intimidate players in the digital asset market. The company filed a motion to dismiss the SEC‘s lawsuit alleging $2 billion. Last month, the agency sent documents to the court demanding that the company recover those funds.

The list of claims includes $876 million in compensatory damages, $198 million in interest on the amount mentioned, and another $876 million in civil penalties.

Representatives from Ripple acknowledged selling tokens to institutional clients. However, the company’s officials noted that the civil fine cannot exceed $10 million. The company also rejected the SEC’s accusations of the ongoing practice of selling XRP to institutions.

Ripple’s Chief Legal Officer, Stuart Alderoty, emphasized that the SEC’s allegations are based on a lost case for the agency. Alderoty believes the agency is trying to demonstrate its intention to persecute crypto companies to intimidate market participants.

“In a case that had no suspicion (or findings) of recklessness or fraud, and in which Ripple won on significant issues, the SEC’s ask is just more evidence of its ongoing intimidation against all of crypto in the U.S.”

In July 2023, the company won a partial victory in an SEC lawsuit. The court found that XRP’s retail sales do not violate securities laws. However, the trial is still ongoing, with the next meeting slated to be on XRP’s institutional sales.