SEC Seeks $1.9 Billion Judgment Against Ripple Labs

According to Blockworks, the Securities and Exchange Commission (SEC) has filed its proposed final judgment in its case against Ripple Labs, seeking a $1.9 billion judgment. Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty announced the news on X Monday, stating that the company will file its response next month. Alderoty criticized the SEC for trading in false and misleading statements, while Garlinghouse accused the agency of acting outside the law. If the judge grants the SEC's motion, Ripple would be required to pay the $1.9 billion within 30 days of the judgment. Additionally, the company would be permanently restrained from conducting unregistered offerings of Institutional Sales. The SEC and Ripple have been engaged in a multi-year legal battle, with the US regulator alleging that Ripple knowingly violated securities laws. Last summer, Judge Analisa Torres issued a summary judgment that dealt a blow to the SEC's initial suit but did not result in a complete win for Ripple. Torres ruled that the institutional sales of Ripple's XRP token could be categorized as unregistered securities transactions, but she also found that the programmatic sales did not qualify.