Millions

Billion

<p>The post <a href="https://coinpedia.org/news/ripple-vs-sec-potential-3-billion-penalty-looms/" rel="noopener noreferrer nofollow">Ripple vs SEC : Potential $3 Billion Penalty Looms</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>Once again we are back to the square, and the Ripple vs SEC case is far from the end. In a recent analysis of the SEC vs. Ripple lawsuit, Zach Rector, a prominent XRP YouTuber and financial expert, speculates that Ripple might face a hefty penalty of over $3 billion if Judge Analisa Torres rules that On-Demand Liquidity (ODL)-related sales are securities. The lawsuit is currently in the remedies phase, and the SEC has filed a motion to compel Ripple to produce financial statements and information regarding institutional XRP sales.</p>
<h2 class="wp-block-heading" id="h-sec-s-request-for-documents-is-still-pending-nbsp"><strong>SEC’s Request for Documents is Still Pending&nbsp;</strong></h2>
<p>The SEC’s recent action occurred on January 11 when it submitted a formal request to the Southern District of New York Magistrate Judge Sarah Netburn. The request specifically asks the court to mandate Ripple’s submission of financial statements and sales contracts.</p>
<p>Despite many calls and emails, Ripple has not presented any post-complaint documents. In defiance of Ripple, the SEC is requesting two specific documents and one interrogatory.</p>
<h2 class="wp-block-heading" id="h-analyst-pulls-the-rug-to-millions-at-stake-what-next"><strong>Analyst Pulls the Rug to Millions at stake, What next?</strong></h2>
<p>On the other side, Rector in his YouTube video <a href="https://www.youtube.com/watch?v=xKQFUIxU7fs&amp;t=572s" rel="noopener noreferrer nofollow">highlights </a>the potential billions at stake for Ripple, emphasizing that the SEC claims the company sold about $3 billion worth of XRP since the lawsuit’s initiation. While the initial SEC claim was significantly higher, legal experts anticipate a reduction during the remedies proceeding. Rector predicts that the final penalty could surpass the $3 billion mark if Judge Torres deems ODL-related sales as securities.</p>
<p>After so much of chaos and the recent SEC move, there is a possibility of a negative ruling. So if that happens, Rector expects Ripple to file an appeal in the Second Circuit, especially if the judge rules that ODL-related XRP sales constitute an investment contract. Rector suggests that confident in legal guidance, Ripple would likely challenge any such ruling.</p>
<h3 class="wp-block-heading" id="h-it-s-not-over-yet"><strong>It’s Not Over Yet…</strong></h3>
<p>As Ripple prepares to respond to the SEC’s motion to compel, the lawsuit’s remedies proceeding is set to conclude by February 12, 2024, with the SEC’s last motion scheduled for April 29, 2024. While there’s no official ruling date, pro-XRP lawyer Fred Rispoli speculates that the judge might issue a decision in early summer, adding a layer of anticipation to Ripple’s legal journey.</p>
<p>Both sides have been given an extra month by the court, which is on top of the discovery date for remedies. This schedule gives the SEC time to make its case to the court and gives Ripple a chance to say no. There is a lot of talk that a settlement may be on the horizon since dates are coming up and Ripple and the SEC have had a history of bad blood in the past.</p>

Ripple vs SEC : Potential $3 Billion Penalty Looms

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