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It’s been more than a year and a half since the Securities and Exchange Commission sued Ripple and two of its executives on December 22, 20202, accusing them of selling XRP as a security.
We’ve assumed before that such a lawsuit is an expensive pleasure, but the SEC this time faced a worthy opponent (who can afford it).
And in a recent interview, Ripple CEO Brad Garlinghouse told how much the company’s lawsuit costs.
$100 million in legal fees
According to Garlinghouse, the cost of the lawsuit could easily exceed $100 million for Ripple. However, according to Garlinghouse, it is worth it, since in the litigation with the SEC they are fighting not only for Ripple, but also for the crypto industry as a whole.
«When this is all set and done, we will have spent over $100 million on legal fees fighting the SEC,» @Ripple CEO @bgarlinghouse said at #Consensus2022.
Watch the full conversation on why he chose to fight the @SECGov: https://t.co/ktYPgXVT5R pic.twitter.com/jcOiuIKr9N
— CoinDesk (@CoinDesk) July 15, 2022
“FACTS AND THE LAW ARE ON OUR SIDE … WHEN IT’S ALL OVER, WE’LL BE SPENDING MORE THAN $100 MILLION ON LEGAL FEES WHILE BATTLING THE SEC… THIS BATTLE IS NOT JUST FOR RIPPLE; IT’S FOR THE ENTIRE INDUSTRY.”
As Garlinghouse said, it’s standard SEC practice when it forces companies to get involved in costly lawsuits. Since most companies do not have the opportunity to afford expensive costs, they are more willing to agree to a settlement.
“THE DYNAMIC HERE IS THAT THE SEC IS FORCING COMPANIES TO AGREE BECAUSE THEY CAN’T AFFORD TO FIGHT.”
Ripple fights to the bitter end
A real lawsuit will become the world’s largest cryptocurrency, and therefore the attention of the entire industry is riveted to it. If Ripple wins in this case, the SEC may be forced to issue more transparent regulations for crypto companies in the US.
However, in the event that Ripple loses the lawsuit, there are concerns that the SEC will also crack down on other crypto companies, though that doesn’t necessarily have to be the case. However, these companies probably don’t have the ability to fight to the bitter end like Ripple.
Earlier, Ripple stated that it is ready to go through this process until the SEC recognizes that the XRP cryptocurrency is not a security.
As for the amount of legal costs, the company’s lawyers are not in vain “eating their bread”. Throughout the process, we have repeatedly made sure that Ripple’s lawyers know their case well, since Ripple remains the clear leader in the number of important disputes you have played.
#Legal #costs #Ripple #amount #million
