Ripple cites Terraform settlement in request to reduce SEC's proposed $2 billion fine

According to The Block, Ripple Labs' lawyers tried to use the U.S. SEC's recent fine against Terraform Labs in an effort to pay a lower fine in its case with the SEC.

Ripple, which has been engaged in a lengthy legal battle with the SEC over the past few years, said in a "Supplemental Authority Notice" on Thursday that the financial penalty proposed by the regulator is unreasonable. The company compared the SEC's proposed $2 billion fine for its sale of XRP to institutional investors to the fine imposed on Terraform Labs.

Ripple argued that its fine should be closer to $10 million. On Wednesday, Terraform agreed to pay a $4.47 billion fine, and a judge approved the settlement late Thursday. Ripple's lawyers said: "The civil penalty sought by the SEC in the Terraform case demonstrates the unreasonableness of the civil penalty sought in this case."

“As Ripple’s dissent explains, in similar (and even more severe) cases, the civil penalties agreed to by the SEC have ranged from 0.6% to 1.8% of a defendant’s gross revenues. Terraform fits that pattern.”