Summary
TLDR: The SEC will seek $2 billion in penalties from Ripple, alleging the sale of unregistered securities in the form of XRP. The legal battle between the two entities has been ongoing since 2020, with Ripple scoring a partial win last year. Investors and Ripple Labs see the ruling as a win for the broader crypto industry. The story is developing and updates will be provided.
Key Points
1. The U.S. Securities and Exchange Commission is seeking $2 billion in penalties from Ripple, according to the fintech firm’s chief legal officer.
2. The SEC and Ripple have been involved in a legal battle since 2020, with the regulator alleging that Ripple sold unregistered securities in the form of XRP.
3. Despite a partial win for Ripple against the SEC in a previous ruling, a judge recently ruled that $728 million worth of contracts for institutional sales did constitute unregistered securities sales.