Ripple, embroiled in a legal battle with the Securities and Exchange Commission (SEC), has fired back at the regulatory body's demand for a staggering $2 billion in penalties. In a detailed motion made public by Ripple's defense lawyer, James Filan, the company vehemently disputes the SEC's proposed fines as excessively punitive and disproportionate to the circumstances of the case.

The filing underscores Ripple's contention that the requested $2 billion in penalties by the Commission is not commensurate with the alleged violations. Ripple asserts that there were no allegations or findings of reckless behavior or fraudulent activity that would typically justify such severe financial penalties.

Central to Ripple's argument is the assertion that its sales of XRP were conducted transparently and with knowledgeable institutional investors fully aware of the transaction details. Ripple also highlights significant legal victories it secured throughout the litigation, suggesting that the SEC's demands are incongruent with the court's findings and could undermine the regulatory body's position.

Stuart Alderoty, Ripple's Chief Legal Officer, condemned the SEC's demand, characterizing it as part of the agency's ongoing intimidation against the entire cryptocurrency industry in the United States. Alderoty emphasized that Ripple's opposition to the proposed penalties is rooted in the absence of allegations or findings of recklessness or fraud.

In response to the SEC's demand, Ripple has proposed a substantially lower penalty of $10 million, arguing that it is more reflective of the nature of the alleged violations and the company's actual conduct. Ripple posits that this amount adequately serves the legal interests without being disproportionately punitive.

The case now awaits the SEC's reply brief, due on May 6, 2024, marking the next step in the legal proceedings. The court will subsequently review Ripple's opposition and the SEC's proposals, with the final decision on penalties to be made by Judge Analisa Torres.

Despite the regulatory hurdles, Ripple remains confident in the fairness of the judicial process, expressing optimism that Judge Torres will approach the final remedies phase impartially.