The SEC demands $770 million from Ripple to settle the XRP lawsuit after dropping charges against executives. Negotiations continue to reduce the fine.
Key Takeaways
- SEC demands $770 million from Ripple in the XRP lawsuit.
- Charges against Ripple executives Brad Garlinghouse and Christian Larsen dropped.
- Ongoing legal phase involves depositions, document requests, and more.
- Ripple aims to reduce the fine through various measures.
The US Securities and Exchange Commission (SEC) has made an astounding demand for $770 million from Ripple Labs to bring an end to the ongoing lawsuit involving the digital currency XRP. This development follows the SEC’s decision to drop all charges against Ripple executives Brad Garlinghouse and Christian Larsen.
Ripple’s Efforts to Reduce the Fine
Legal proceedings have taken an interesting turn as John Deaton, the lawyer representing over 75,000 XRP holders, recently took to Twitter, stating that there has been no significant dialogue regarding a potential settlement between Ripple and the SEC.
Deaton expressed his belief that the SEC, in light of the dismissal of its charges, is seeking $770 million as a form of financial recompense, and the agency appears to be “pissed and embarrassed.”
Ripple Faces SEC’s $770 Million Settlement Demand in XRP Lawsuit👀👀 https://t.co/3zLJl23msQ
— 🇳🇱 MackAttackXRP® 🇳🇱 65K-XRP-Followers (@MackAttackXRP) October 27, 2023
The ongoing legal phase is often referred to as the “penalty phase” and involves various legal procedures, including depositions, document requests, and an examination of on-demand liquidity (ODL) transactions, among others.
Lingering Legal Battles and Mounting Expenses
Ripple, in response to the substantial fine demanded by the SEC, is determined to reduce it significantly. The company aims to achieve this by excluding certain ODL transactions, implementing cost-cutting measures, and making adjustments to its salary structure.
However, it’s important to note that a final verdict from Judge Torres is not expected until late summer 2024. Even after that, the legal battle may continue with the possibility of an appeal, further prolonging the resolution.
To Conclude
The SEC’s demand for a $770 million settlement marks a crucial moment in the ongoing XRP lawsuit. It remains uncertain whether Ripple will be able to negotiate a lower settlement with the SEC or if the case will ultimately proceed to trial.
If the case goes to trial, it is expected to be a lengthy process, extending the resolution for several years and placing substantial financial burdens on Ripple due to escalating legal expenses. Ripple’s ability to navigate this complex legal landscape and secure a favorable resolution remains a matter of keen interest in the cryptocurrency community.
