The U.S. SEC requests the judge to impose a $2 billion fine on Ripple Labs

ChainCatcher news, Ripple CEO Brad Garlinghouse confirmed on social media that the U.S. Securities and Exchange Commission (SEC) will seek $2 billion in fines and penalties in its legal case against the cryptocurrency token XRP. The regulatory agency is set to release a public brief on Tuesday, and Ripple's Chief Legal Officer Stuart Alderoty stated that the company will submit a response next month.

Garlinghouse emphasized: The SEC plans to request a $2 billion fine from the judge in a case with no allegations (let alone findings) of fraud or reckless behavior. There is absolutely no precedent for this. We will continue to expose the SEC's true nature in our response.

The SEC sued Ripple in 2020, claiming that the company violated its rules by selling digital tokens to raise funds without registering them as securities. In July of last year, a federal judge ruled that XRP sold to retail investors on exchanges does not constitute an investment contract.