Ripple rejects fine proposed by the SEC and asks to keep its financial agreements secret – DiarioBitcoin

Again, Ripple criticizes attempts by SEC for establishing such a high fine against it, and also requests that its agreements and commercial strategies be kept secret, since the publication of said information would compromise its competitiveness in the market.

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• Ripple criticizes attempts by SEC for setting a high fine against him
• He also insists on the need not to publish details about his agreements and commercial strategies.
• They allege that the publication of this information could harm them commercially.
• The company and the SEC They continue to debate about the fine that the court should set

The company that develops products and solutions based on technology Blockchain, Ripple Labsinsists before the court that the fine sought by the Securities and Exchange Commission (SEC) against him is disproportionate, and he defends that the strategies and commercial agreements concluded by the company must be kept secret to avoid possible damages.

Ripple criticizes requests from the SEC to support demand

The considerations of Ripple They came to light in a letter sent by the defense to Judge Analisa Torres, where the company’s lawyers object to the statements made by the SEC to support the requested fine. They maintain that the company’s financial statements should not influence the court’s decision and analysis, and calls for trade reports to be kept secret because this could make them less competitive if such information is disclosed to the public.

The clarification from the team Ripple comes into place due to the demands of the SEC, since the agency requires revealing said private information to justify the fine of USD $2,000 million that they want to impose on the company. The agency claims that the rules are very clear, and that the operating company of XRP should not receive special treatment by keeping such reports secret.

According to reports, the SEC is requesting information on the contracts and sales methods used by Ripple to market XRP between different investors, and although it claims that it is already obsolete, the company maintains that the past terms “they remain confidential and are treated as sensitive information”. The company’s chief financial officer, Jonathan Billich, said that revealing such strategies could give future counterparties an unfair advantage:

“Ripple has established a valid and commonly accepted basis for sealing its confidential financial documents” Ceresney alleged, emphasizing the company’s right to privacy.

The battle of Ripple for the fine of the SEC

While the amount of the sanction that must be honored is defined Ripple after his trial with the SEC, The agency is fighting with the company to assert its judgment and set a fine of USD $2 billion.

After the figure was announced, Ripple argued that the sanction was disproportionate and proposed:

The Court should deny the SEC’s requests for an injunction, disgorgement, and prejudgment interest, and should impose a civil penalty of no more than $10 million.

In this regard, the SEC insists that Ripple can’t argue how “such a low and insignificant penalty would be a representative punishment applicable to their violations”. Nor do they see how said sanction “it would discourage the same company or others from raising capital on a large scale without making the corresponding registration.”

For now, while the parties insist on their arguments, the court will be the one that makes the decision on the amount that will be applied to the fine that must be assumed. Ripple, this for the pre-sale of your token XRP among institutional investors, which did violate certain regulations established in securities laws.

Article by Angel Di Matteo / DailyBitcoin

Picture of Unsplash

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