In light of the latest events shrouded in secrecy, the U.S. Securities and Exchange Commission (SEC) intends to demand a $2 billion fine from Ripple Labs, the creator of the cryptocurrency Ripple (XRP).
Stuart Alderoty, Ripple's legal counsel, commented on the situation as follows:
"As soon as the SEC releases its summary tomorrow, you will see that they are requesting the imposition of fines and sanctions totaling $2 billion from the judge. We will present our response next month, but as we have repeatedly seen, this regulator operates on false, inaccurately defined, and misleading claims. And once again, they have not deviated from this line. Instead of faithfully enforcing the law, the SEC continues its attempts to punish and intimidate Ripple and the entire industry. We believe the court will act justly."
Brad Garlinghouse, CEO of Ripple, stated regarding the situation:
"Under Gensler's leadership, the SEC has repeatedly crossed legal boundaries, been criticized by courts for 'gross abuse of power' (DEBT Box case), and for acting 'contrary to lawfulness' (Ripple case). Let's not forget Gensler's indifference to FTX's fraud. The SEC is preparing to ask the court for a $2 billion fine in a case that does not involve any allegations of fraud or negligence. This is entirely unprecedented. 'We will continue to expose the true face of the SEC as we respond to this.'"
Chris Larsen, co-founder of Ripple, commented on the situation's development:
"The balance of the SEC under Gensler's leadership has been disrupted. It is alarming that the SEC considers itself above the law, thus pushing the United States ahead of other G20 countries. This fact should not and will not go unnoticed in the election year."
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