The Ripple CLO Stuart Alderoty publicly criticizes the SEC’s request for nearly $2 billion in penalties in the Ripple case, describing the demand as evidence of ongoing intimidation against the crypto industry.
Ripple’s chief legal officer (CLO) Stuart Alderoty has issued fresh criticisms against the U.S. SEC following its push to ensure the San Francisco-based company pays a fine of nearly $2 billion in their ongoing legal tussle.
Ripple Files Rebuttal to SEC $2B Request
On March 22, the SEC asked the court to impose a penalty of $1.95 billion on Ripple for violating Section 5 of the Securities Act through its institutional sales of XRP.
However, Ripple filed its rebuttal to the request, emphasizing that the court should not award the SEC more than $10 million in civil penalties.
Ripple’s opposition to the SEC’s remedies-related brief has continued to trigger reactions across the broader crypto community, with Alderoty also commenting on the matter.
Ripple CLO Comments on SEC Hefty Demand
In an X post today, Alderoty called attention to Ripple’s opposition to the SEC’s request. He said the nearly $2 billion the SEC seeks is excessive, given that the ongoing lawsuit does not involve any allegations of fraud nor recklessness.
In addition, Alderoty mentioned that Ripple has emerged victorious on significant issues of the lawsuit and should not be asked to pay such a huge fine. This is evident in the company’s victory on programmatic sales and other distributions of XRP.
Furthermore, the Ripple legal officer criticized the SEC, characterizing its demand for nearly $2 billion in penalties as evidence of ongoing intimidation tactics targeting the United States crypto industry.
Undeterred by the SEC’s whopping demand, Alderoty conveyed trust in the impartiality of the judge overseeing the case.
Our opposition to the SEC’s request for $2B in penalties for legacy institutional sales is now public. In a case that had no allegations (or findings) of recklessness or fraud, and in which Ripple won on significant issues, the SEC’s ask is just more evidence of its ongoing… https://t.co/GLcdsyInZW
— Stuart Alderoty (@s_alderoty) April 23, 2024
It bears mentioning that Alderoty had previously commented on the SEC’s demand for close to $2 billion in penalties. At the time, the Ripple CLO described the SEC as a regulator that trades in false statements in a bid to mislead the public.
He condemned the SEC for persisting in its desire to punish Ripple and other crypto-related businesses rather than diligently applying the law.
Two SEC Lawyers Resign Amid Court Sanction
In other news, Bloomberg reported yesterday that Joseph Watkins and Michael Welsh, two SEC lawyers involved in the case against DEBT Box, have resigned.
This comes after a federal judge in Utah sanctioned the SEC for providing misleading facts to obtain a temporary restraining order (TRO) against DEBT Box.
As reported earlier, the Utah judge sanctioned the SEC by ordering it to pay DEBT Box’s legal fees while denying the commission’s request to withdraw the case without prejudice.
Consequently, sources familiar with the matter told Bloomberg that the commission asked the lawyers to resign honorably or risk contract termination. According to the Bloomberg report, the lawyers took the former option.
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