‘Stop trying to fool the judges’
Ripple's Chief Legal Officer Stuart Alderotti took to social media on September 2 and expressed concerns about the SEC's negligence. Taking to his X handle, he wrote: “The term ‘crypto asset security' is nowhere to be found in any of the Act—it is a coined term with no legal basis. The SEC should stop using this to manipulate judges.
A federal judge recently ordered Ripple Labs to pay the SEC approximately $125 million in fines, significantly less than the $2 billion the agency originally sought in a legal battle four years ago. The fine is related to allegations of improperly selling XRP tokens to institutional investors.
Afterward, Stewart expressed satisfaction with the outcome of the long legal battle with the SEC. Ripple said it decided to defend the case not only on behalf of itself, but also on behalf of the entire crypto industry. Alderoty criticized the SEC's current administration for taking an anti-crypto stance and engaging in what he described as a “war on crypto” through the courts.
Alderoty conceded the decision regarding the $125 million fine imposed by the court, which stated that certain historical sales must be registered under securities laws. However, the judge noted that Ripple did not act recklessly or with intent to defraud and rejected the SEC's $2 billion request. Ripple is focused on the clarity and finality of this decision, which it believes is beneficial not only for Ripple, but also for the broader crypto industry.
Last July, US District Judge Annalisa Torres in Manhattan handed Ripple a partial victory, ruling that sales of XRP on public exchanges do not count as unregistered securities offerings. The judge later denied the SEC's request to appeal that decision.
