The U.S. Securities and Exchange Commission (SEC) is asking Ripple to pay a hefty $770 million fine for breaking securities laws. According to crypto lawyer John Deaton, the SEC is feeling frustrated and embarrassed because it has lost several legal battles against Ripple.
SEC Seeks $770 Million from Ripple
The U.S. Securities and Exchange Commission (SEC) wants Ripple to pay a $770 million penalty for breaking securities laws. This demand comes after the SEC lost legal battles against Ripple, and they recently dropped charges against Ripple’s CEO and co-founder. The lawyer, John Deaton, believes the SEC is upset and looking for this hefty sum.
Deaton explains that the penalty phase is like a second legal battle, involving lots of legal procedures. He doesn’t expect a final judgment from the judge until late summer at the earliest, and it could take up to a year before an appeal is filed.
The outcome of the SEC’s lawsuit against cryptocurrency exchange Coinbase will also affect how much Ripple has to pay. If Coinbase wins its case, the SEC may have to reconsider its stance and possibly reach a settlement with Ripple. However, if Coinbase loses, a settlement might be less likely.
The oral argument for the Coinbase case is set for January 17, 2024, with a ruling likely a few months later. Deaton believes that Ripple will spend a substantial amount on legal fees to reduce the $770 million penalty. He also thinks that Ripple will succeed in significantly lowering the penalty amount because this isn’t a fraud case, but rather a matter of Ripple selling unregistered securities in the context of cryptocurrencies.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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