Ripple Likely to Trim $770 Million SEC Fine, Expert Says – Crypto News – Crypto News
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Ripple Likely to Trim $770 Million SEC Fine, Expert Says Ripple Likely to Trim $770 Million SEC Fine, Expert Says

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Ripple Likely to Trim $770 Million SEC Fine, Expert Says – Crypto News

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Alex Dovbnya

Legal expert Jeremy Hogan has outlined potential strategies that Ripple might employ to notably decrease a purported $770 million SEC fine

Ripple is likely to manage to significantly reduce the potential $770 million fine imposed by the SEC, according to legal expert Jeremy Hogan. This would make yet another win for the embattled company.  

Hogan’s most recent take

In his thread on the X social media platform, Hogan stressed the key arguments that Ripple could use to lower the damages sought by the SEC. 

These arguments are based on recent case law and the specific circumstances of Ripple’s XRP sales. 

Hogan points out that the “disgorgement” sought by the SEC, which is the recovery of profits made from the alleged wrongdoing, should be based on Ripple’s net profits, not the gross amount. This distinction is crucial as it allows Ripple to deduct business expenses, potentially slashing the sum significantly.

Moreover, Hogan emphasizes that only sales with a U.S. nexus fall under the SEC’s jurisdiction, introducing a “nexus” question that could further limit the scope of any financial penalty. 

A significant court decision 

Previously, Ripple celebrated a court decision that could tilt the legal battle in its favor. Ripple’s chief lawyer, Stuart Alderoty, hailed the 2nd Circuit’s ruling in SEC v. Govil, noting that the SEC must prove investors suffered actual financial harm before demanding significant disgorgement. 

This view, which is supported by Hogan, suggests that Ripple’s liability may depend on whether XRP investors have incurred losses.

Prior to that, the regulator moved to dismiss its charges against Brad Garlinghouse and Chris Larsen, the top Ripple executives. Alderoty hailed the SEC’s decision to drop all charges against Ripple executives as a “surrender.”

About the author


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Alex Dovbnya

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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