SEC seeks $2 billion in penalties from Ripple in ongoing lawsuit
According to the latest filing from the Securities and Exchange Commission (SEC) in the lawsuit against Ripple, the financial regulator is requesting $2 billion in penalties from the company. The filing reveals that Ripple sold XRP to over 80 institutions, with almost all of its revenue in 2023 coming from the sales of the altcoin. Despite this legal battle, the price of XRP continued its upward trend, surpassing $0.64 early on Tuesday.
Ripple’s Chief Legal Officer, Stuart Alderoty, announced that the company will file its response next month and criticized the SEC’s statements in a recent tweet. He expressed confidence in the court to handle the remedies phase reasonably. Ripple CEO Brad Garlinghouse also criticized the SEC, accusing the agency of abusing its power entrusted by Congress.
Attorney James Filan shared a redacted version of the motion filed by the SEC, which was made public earlier today. The motion reveals that Ripple made 80 institutional sales of XRP, and its financial statements indicate that a significant portion of its revenue in 2023 was generated from the sale of XRP tokens.
On the technical side, the XRP price has been trading within a tight range for over 250 days, establishing a support floor at $0.586. Analysts suggest that as long as XRP remains above this level and Bitcoin price sustains above $59,000, a breakout in the altcoin is expected.
RIPPLE FAQS
What is Ripple?
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
What is XRP?
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
What is XRPL?
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
What blockchain technology does XRP use?
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
