Stuart Alderoty, the Chief Legal Officer (CLO) of Ripple, has publicly criticized the Securities and Exchange Commission’s (SEC) request for a $2 billion penalty in the ongoing legal battle between the two parties. Alderoty described the demand as evidence of ongoing intimidation against the crypto industry.
In response to the SEC’s request, Ripple has filed a rebuttal, arguing that the court should not award the SEC more than $10 million in civil penalties. Ripple’s opposition to the SEC’s request has sparked reactions within the crypto community, with Alderoty also commenting on the matter.
Alderoty highlighted Ripple’s opposition to the SEC’s demand in a recent post. He argued that the SEC’s request for nearly $2 billion is excessive, especially considering that the lawsuit does not involve any allegations of fraud or recklessness. Alderoty also pointed out that Ripple has already achieved victories in significant aspects of the lawsuit, such as programmatic sales and other distributions of XRP.
Furthermore, Alderoty criticized the SEC, stating that its demand for such a substantial penalty is evidence of ongoing intimidation tactics against the US crypto industry. Despite the SEC’s demand, Alderoty expressed trust in the impartiality of the judge overseeing the case.
It’s worth mentioning that Alderoty had previously criticized the SEC’s demand for close to $2 billion in penalties, calling the regulator a spreader of false statements to mislead the public. He condemned the SEC for focusing on punishing Ripple and other crypto-related businesses instead of applying the law diligently.
In unrelated news, two SEC lawyers involved in the case against DEBT Box, Joseph Watkins and Michael Welsh, have resigned. This follows a federal judge in Utah sanctioning the SEC for providing misleading facts to obtain a temporary restraining order against DEBT Box. The SEC asked the lawyers to resign or risk contract termination, and they chose to resign.
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