Turbulent times ahead as Ripple files response to penalty of $2 billion

The continuing legal encounter between Ripple Labs and the American SEC is climaxing this week. Ripple is planning to file an opposition brief, and its sealed response will be submitted by 22/April/2024. Ripple Lab’s submission of a sealed response will be followed by a version that will be made public very soon. It is to be recalled that the SEC sought profit disgorgement obtained from XRP’s sales activity and heavy penalties against Ripple. The US SEC had instructed Ripple Labs to pay $876 308 712 in disgorgement, and there were allegations against Ripple for performing XRP unregistered offerings in sales.

Ripple Labs is expected to file an opposition brief combined with exhibits and supporting declarations. The strategy and content of Ripple’s opposition brief are widely speculated, and some reports indicate a possibility of releasing a public version of its key exhibits. There are possibilities of Ripple Labs leveraging its success in the legal battle in the Aron case, which pointed out that the SEC is not the competent authority to charge a penalty if there is no financial loss to the buyer community. 

Ripple may cite the clarification of Coinbase on sales activity of the secondary market not being counted as securities. It may strengthen the legal stand taken by Ripple Labs in the battle, which gained huge media attention.

Stakeholders in the case and third parties can file motions and opposition until 20/May/2024. The price of XRP remains super flexible despite the legal encounter recording an increase of 5% in the previous day. Inclination towards XRP options and XRP futures coupled with upbeat market sentiment signals bullish momentum shortly. The penalty of the American regulatory agency includes disgorgement, civil penalties, and prejudgment interest.

It is undeniable that the tough encounter between SEC and Ripple Labs has intensified. According to the information received just now, the trial scheduled on 23/April/2024 will be decided by a judicial officer in the rank of federal judge. Media reports indicate that massive developments are expected this week in the lawsuit between Ripple and the American federal agency. The legal fight between Ripple Labs and SEC will continue after the trial scheduled for 23/April/2024.

Ripple confirmed that the legal fight will continue, and it is in stark contrast to the speculations of an amicable settlement. The regulatory spat between Ripple Labs and SEC enters its final and eventful phase on 23/April/2024. Some legal experts point out that Ripple has a better chance of winning a legal battle as it secured three court wins last year. 

It was speculated that an agreement between Ripple Labs and SEC may happen before 23rd April. The head of Ripple’s legal wing denied the rumors stating that there is no ultimate pretrial conference since the charges have been dismissed by the SEC. The final resolution of the case between SEC and Ripple Labs will probably positively impact the price of XRP.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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