Ripple Labs Criticizes SECs 2 Billion Fine as Excessive Cites Terraform and Settlement Proposal 10 Million Fine Would Be Just Right
Report: Ripple Labs strongly opposes SEC’s proposed $2 billion fine in court documents filed on Thursday, citing the judgment result of the Terraform settlement on Wednesday and arguing that a fine not exceeding $10 million would be more reasonable.
According to a “notice of supplemental authority” submitted by Ripple Labs yesterday (13), the company compared the $20 billion fine proposed by the SEC against them with the $45 billion fine imposed on Terraform Labs and raised objections.
The SEC’s handling and final civil penalties in the Terraform case indicate that the civil penalties sought by the SEC against Ripple are quite unreasonable.
The document stated that despite Terraform Labs and its CEO Do Kwon causing global investors over $40 billion in fund losses, they only faced a civil penalty of around $45 billion.
Previously, lawyers for Terraform and Do Kwon had also negotiated with the SEC’s claim of a $53 billion civil penalty, arguing that a maximum of $1 million should be imposed.
Ripple’s lawyers stated that in similar cases, SEC fines typically range from 0.6% to 1.8% of the defendant’s total revenue. Considering Ripple’s $1.3 billion revenue from selling XRP, we suggest a more reasonable fine for Ripple, up to $10 million.
The lawyer also mentioned that Terraform and its founder Do Kwon are suspected of civil fraud, while Ripple has no fraud-related charges, and institutional investors have not suffered any losses as a result.
Bill Morgan, a legal expert, agreed with this and believed that the SEC’s penalty request this time is untenable.
With the SEC and Ripple’s lawsuit entering its fourth year, the SEC submitted its final defense in the lawsuit remediation phase last month, potentially setting a precedent for the handling of cryptocurrencies under U.S. securities laws in September.
Despite years of litigation, Ripple continues to develop new products and expand its business, including acquiring digital asset custodian Standard Custody and launching a new stablecoin, $RLUSD.
Do Kwon
Ripple
SEC
Terraform Labs
civil penalties
