Ripple Labs recently made headlines by rejecting the U.S. SEC’s request to recover $2 billion for institutional sales of XRP tokens. The company filed a lawsuit claiming that the amount in question is much lower and that the SEC is using intimidation tactics in the digital asset market. The SEC demanded $876 million in compensatory damages, $198 million in interest, and $876 million in civil penalties.

Representatives from Ripple admitted to selling tokens to institutional clients but argued that the civil fine should not exceed $10 million. They also denied the SEC’s allegations of ongoing XRP sales to institutions. Ripple’s Chief Legal Officer, Stuart Alderoty, criticized the SEC’s actions, stating that the agency is trying to intimidate crypto companies and market participants.

In a recent tweet, Alderoty stated, “In a case that had no allegations of recklessness or fraud, and in which Ripple won on significant issues, the SEC’s ask is just more evidence of its ongoing intimidation against all of crypto in the U.S.”

Ripple had a partial victory in a previous SEC lawsuit, where the court ruled that XRP’s retail sales did not violate securities laws. However, the legal battle continues, with the focus now shifting to XRP’s institutional sales. Stay tuned for more updates on Ripple’s legal battles and the evolving crypto landscape.

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