Ripple Challenges SEC’s $2 Billion Penalty Over Terraform Labs Settlement
In its ongoing lawsuit against the regulator, Ripple has referenced a recent settlement between the SEC and Terraform Labs.
On June 13th, Ripple filed a notice with Judge Analisa Torres where the company argued that the proposed $2 billion fine by SEC was unjust in comparison with what Terraform incurred.
Ripple, on the other hand, pointed out that Terraform Labs settled at $4.47 billion while filing for bankruptcy, which they claim is consistent with historical civil penalties of between 0.6% to 1.8% of gross revenue.
The Company also stressed that there are no accusations of fraud against them as well as pointing out to institutional investors’ market loss.
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Ripple has sought to restrict its fine to at most $10 million relying on Terraform’s settlement as example a precedent in this legal farce.
According to SEC, Ripple raised more than $1 billion when they sold unregistered securities but after Judge Torres decided that XRP sales were to institutional investors were securities and programmatic sales did not breach securities law.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
