Advertisement
AD

Main navigation

Ripple Ally Raises Objection to $22 Million SEC Fine: Details

Advertisement
Tue, 20/12/2022 - 12:07
Ripple Ally Raises Objection to $22 Million SEC Fine: Details
Cover image via www.freepik.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

According to the most recent updates provided by James K. Filan regarding the LBRY case, the SEC has filed its opposition to LBRY's motion to limit the SEC's remedies.

Advertisement

In a throwback to events after LBRY lost its lawsuit with the SEC, LBRY provided the SEC with a settlement proposal on Nov. 25, following a status conference held on Nov. 21.

After the submission of the settlement proposal, both parties met to discuss the terms on Nov. 29 but were unable to resolve the terms of the remedies sought by the regulator.

Citing its financial conditions, LBRY requested an expedited briefing schedule to limit the SEC remedies, which were approved by the court. All the while, the scope of the SEC remedies was not made public. This is now coming to light, according to recent documents.

In a document attached to James K. Filan's tweet, the SEC claims that "a penalty equal to LBRY's full pecuniary gain of $22,151,971 was fair and reasonable under the circumstances."

According to the SEC, LBRY's gross receipts for its Section 5 violation equaled the value it received in exchange for its sale of 280 million LBC from its premine and market-making activity on multiple crypto asset trading platforms. It approximates this to be over $22 million.

The agency seeks from the court a penalty on LBRY equal to its gross pecuniary gain to deter LBRY and others from conducting illegal, unregistered offerings. It highlights a portion of the Securities Act that sets forth three penalty tiers, adding that the imposition of a civil monetary penalty may also follow a three-step process.

In the first step, the statutory penalty amount, adjusted for inflation, for a violation by LBRY of each tier equals the following: for the first tier, $103,591; for the second tier, $517,955; and the third tier $1,035,909.

The second step was to determine the maximum penalty. According to it, LBRY's gross pecuniary gain equals approximately $22,151,971.

LBRY's reply to the SEC motion is anticipated soon.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD