There has been an important development in the cryptocurrency market recently. Terraform Labs reached a settlement with the SEC and agreed to pay 4.47 billion dollars within this framework. As a reflection of this situation, a statement came from Ripple, whose lawsuit process is still ongoing. In the statement made by #Ripple , it was stated that the compromise request was devoid of reality and a call was made for the court to reject this compromise.

SEC Requested $4.47 Billion

The crux of the SEC's $4.47 billion request was the allegation that Kwon and his company were responsible for significant securities fraud that caused investors losses of approximately $40 billion.

On the other hand, it is known that the court held Kwon and Terraform Labs responsible for this huge fraud. The court also describes the matter as the largest securities fraud.

Ripple Finds the Penalty Imposed to be Disproportionate

While Ripple states that the penalty imposed is disproportionate, it bases this on Terraform Labs' gross sales of $ 33 billion. The penalty imposed represents 1.27% of these sales. Ripple also stated that the SEC acts hypocritically in such cases and stated that in the past, the SEC demanded small settlements in much more serious cases.

Stating that the penalties should be at the level of 0.6%, as in past examples, Ripple describes this request of the SEC as an overreach. Another important emphasis of Ripple is that there is no fraud allegation in this case and institutional investors did not suffer significant losses. In this context, Ripple stated that the penalty should be significantly lower.

Coinbase also thinks the penalty is high

Paul Grewal, the head of Coinbase's legal department, is also among those who think that the penalty imposed is high. Accordingly, he criticized the SEC's settlement request, questioning its effectiveness and ability to provide practical solutions for Terraform victims. Grewal suggested a $7 million settlement would be more appropriate.

It is not in vain that there are criticisms from Ripple and Coinbase. Because, as is known, both organizations are in litigation with the SEC. Ripple, in particular, may be seriously affected by this decision. Because if the court accepts the settlement, this will mean billion-dollar fines for Ripple. That's why Ripple is calling on the court not to approve the sentence.