Coin Edition -
- U.S. SEC submitted its initial remedies brief and proposed judgment in the Ripple case.
- The SEC wants Ripple to remit over $1.95 billion in fines for violating securities laws.
- Ripple may liquidate over 3.12 billion XRP to raise the penalty of $1.95 billion.
The U.S. Securities and Exchange Commission (SEC) recently submitted its initial remedies brief, proposed judgment, and accompanying exhibits in the Ripple case. Meanwhile, the SEC’s recent filing proposing judgment has sparked interest among crypto market participants.
In particular, the regulator explicitly requested that the court mandate Ripple to remit $1,950,768,364 in fines and penalties for its breach of federal securities laws. As per the SEC’s stipulation, Ripple must settle the $1.95 billion sum within 30 days following the court’s adoption and issuance of the proposed judgment as the final ruling.
If the court rules in favor of the SEC without Ripple appealing the decision, the payment company will be compelled to raise the $1.95 billion within 30 days of the final judgment. One potential avenue for Ripple to raise funds to meet this demand could be selling its XRP tokens, particularly those held in escrow.
As of March 24, Ripple API data shows the firm held 40,100,000,005 XRP in escrow wallets. Given the asset’s prevailing market price of $0.6250, Ripple may liquidate 3,121,229,382 XRP tokens to raise $1,950,768,364.
Such a massive sell-off could have significant implications for the price of XRP, potentially causing its price to tank significantly. Besides, Ripple’s monthly sale of XRP has been known to impact XRP’s price albeit slightly.
It is important to note that this scenario is speculative, pending the court’s decision and any potential appeals by Ripple. Moreover, the company is set to file its opposition to the SEC’s reply brief next month, aiming to challenge the proposed judgment.
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