Given the SEC’s request for a hefty $2 billion penalty from Ripple, we have outlined the potential quantity of XRP that the company could potentially offload in order to fulfill this obligation, assuming the court rules in favor of the regulatory agency.
In its ongoing action against Ripple, the U.S. SEC has just presented its initial solutions brief, proposed judgment, and supporting documents. The crypto world is paying close attention to the SEC’s new filing, which outlines a proposed decision.
The SEC Will Seek a Fine of Nearly $2 Billion
As a consequence of Ripple’s breach of federal securities laws, the court has ordered the company to pay a startling $1,950,768,364 ($1.95 billion) in fines and penalties. This is in response to the Securities and Exchange Commission (SEC) ‘s demands.
The Securities and Exchange Commission (SEC) has mandated that Ripple must make a payment of $1.95 billion within thirty days of the court’s approval and issue of the final decision.
In the event that the court agrees with the SEC and Ripple decides not to contest the finding, the business would be required to collect the $1.95 billion within thirty days of the final judgment being issued.
What Amount of XRP Ripple Could Be Sold in Order to Pay the Fine
Selling Ripple’s XRP tokens, particularly those held in the business’s escrow accounts, is one potential revenue stream the company may pursue. According to a report from the Securities and Exchange Commission (SEC), Ripple had 45.77 billion XRP in its escrow accounts as of December 31, 2023.
A total of 600 million XRP, which had been kept in escrow, has already been released and utilized by the cryptocurrency payments firm as of this year. The total quantity of XRP that is now being held in escrow has reached 45.17 billion of the cryptocurrency as a result of this.
Additionally, if Ripple were to contemplate increasing the $1.95 billion penalty by unilaterally selling a portion of its XRP assets, the firm would be compelled to sell around 3.12 billion XRP units from its escrow, which would be valued at $0.6247 at the current price. This would be the case if the penalty were to be increased.
Roughly 3.12 billion XRP coins could be put up for sale, equivalent to approximately 6.91% of the total XRP coins available for purchase. If this technique is used and large quantities of XRP are sold on the market, the value of the coin could be severely disturbed.
One thing has to be brought to your attention, and that is the fact that this study just touches upon a chain of events that might not actually take place. Ripple would not consent to a finding that would necessitate the payment of fines totaling roughly two billion dollars, and there is no assurance that the court will take the stance held by the Securities and Exchange Commission (SEC).
Meanwhile, Ripple plans to counterargue the proposal next month, when it will submit its objection to the reply brief for the Securities and Exchange Commission (SEC). In the meantime, Ripple plans to express its disagreement with the idea.
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