Red Sea CLO slams exchanges, labels its proposed $2 billion fine in XRP case “evidence of intimidation”

Ripple’s CLO Stuart Alderoty has publicly criticized the U.S. Securities and Exchange Commission’s (SEC) request for a nearly $2 billion fine in the Ripple case, calling the request evidence of ongoing intimidation of the cryptocurrency industry.

Ripple’s Chief Legal Officer (CLO) Stuart Alderoty has issued fresh criticism of the U.S. Securities and Exchange Commission following its ongoing efforts to ensure the San Francisco-based company pays a nearly $2 billion fine in their ongoing legal battle.

Ripple filed a rebuttal to the SEC’s request for a $2 billion fine, emphasizing that the court should not impose a civil penalty of more than $10 million on the SEC.

Ripple’s objection to the SEC’s remedial filings has drawn reactions from across the cryptocurrency community, with Alderoty also commenting on the issue.

Ripple CLO Comments on Huge SEC Request

In a post today, Alderoty addressed Ripple’s objections to the SEC’s request. He said the nearly $2 billion the SEC is seeking is excessive because the ongoing lawsuit does not involve any allegations of fraud or reckless conduct.

Furthermore, Alderoty mentioned that Ripple won on important issues in the lawsuit and should not be required to pay such a huge fine. This was demonstrated in the company’s victories in programmatic sales and other distributions of XRP.

Additionally, Ripple’s legal officer criticized the SEC, describing its demand for a nearly $2 billion fine as evidence of an ongoing intimidation campaign against the U.S. cryptocurrency industry.

Despite the SEC's massive request, Alderoty expressed confidence in the impartiality of the judge who will hear the case.

It is worth mentioning that Alderoty has previously commented on the SEC's request for a nearly $2 billion fine. At the time, Ripple’s CLO described the SEC as a regulator that traded with false statements to mislead the public.

He decried the SEC’s continued desire to punish Ripple and other cryptocurrency-related businesses instead of diligently complying with the law.

In other news, Bloomberg reported yesterday that Joseph Watkins and Michael Welsh, two SEC lawyers involved in the DEBT Box case, have resigned.

Previously, a federal judge in Utah sanctioned the SEC for providing false information to obtain a temporary restraining order against DEBT Box.

As previously reported, a Utah judge vindicated the SEC by ordering it to pay Debt Box’s legal fees while rejecting the commission’s request to dismiss the case.

As a result, people familiar with the matter told Bloomberg, the committee asked the lawyers to resign openly or face the risk of termination of their contracts. According to Bloomberg, the lawyers chose the former.

Disclaimer: This content is for informational purposes only and does not constitute financial advice. The opinions expressed in this article may contain the personal opinions of the author and do not necessarily reflect the views of The Crypto Basic. Readers should conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.