SEC Responds to Ripple's $2 Billion Objection

The US Securities and Exchange Commission (SEC) rejected Ripple's objection to its $2 billion penalty request.

Ripple wanted to reduce its own penalty by citing the penalty given to Terraform Labs as an example. However, the SEC did not accept Ripple's demands, stating that these two situations were different.

“Ripple does not accept anything”

SEC lawyers said, “Ripple is misleading the court by basing its penalty determination in this case on the settlement in the Terraform case. “In the Terraform case, the company went bankrupt, agreed to burn all keys to its crypto asset securities, refund a significant amount to investors, and dismiss two board members at the time of the violations,” he said.

Ripple does not accept these articles. In fact, Ripple does not accept anything.”

Terraform agreed to pay $4.47 billion last month as part of a settlement it reached with the SEC. As part of the settlement, Terraform's founder Do Kwon will not be able to manage a public company again.

How much will he pay?

Ripple proposes to pay a $10 million penalty, unlike the SEC's $2 billion penalty demand. SEC lawyers wrote that if the rate in the Terraform case were to be followed, Ripple would have to be fined $102.6 million.

Stuart Alderoty, Ripple's CLO, said: “The court clarified that XRP is not a security. There are no 'victims' to whom compensation must be paid. The worst thing for the SEC is that Ripple is growing. But the SEC at least appears to have given up on its absurd $2 billion demand,” he said.