According to a recent series of posts by Stuart Alderoty, Ripple's chief lawyer, the U.S. Securities and Exchange Commission (SEC) is set to request a whopping $2 billion in fines and penalties.
This has set the stage for what promises to be yet another fiercely contested legal showdown between
Alderoty minced no words in his criticism of the SEC, stating that the regulator "remains bent on wanting to punish and intimidate" the company as well as the cryptocurrency industry in general.
Alderoty has stated that Ripple's response to the SEC's request will be filed in April. "Our response will be filed next month, but as we all have seen time and again, this is a regulator that trades in statements that are false, mischaracterized, and designed to mislead. They stayed true to form here," he said.
Ripple CEO Brad Garlinghouse echoed Alderoty's sentiments, denouncing what he perceives as regulatory overreach on the part of the SEC.
Garlinghouse took to X to call attention to alleged instances of misconduct by the SEC under Gary Gensler's leadership, citing judicial rebukes in prior cases.
The Ripple boss has also pointed to the SEC's lack of attention in the FTX case.
Garlinghouse further mentioned that asking for a $2 billion fine in a case that involved no allegation of fraud or recklessness is unprecedented:
"There is absolutely no precedent for this. We will continue to expose the SEC for what they are when we respond to this."