Ripple Labs’ lawyers are trying to use the recent fine against Terraform Labs in an effort to pay a lower fine in its case with the U.S. Securities and Exchange Commission (SEC), according to Odaily Planet Daily. 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 fine proposed by the regulator was unreasonable.
The company compared the SEC’s proposed $2 billion fine for its sale of XRP to institutional investors to the fine it imposed on Terraform Labs, which Ripple argued should be closer to $10 million. Terraform agreed to pay a $4.47 billion fine on Wednesday, and a judge approved the settlement late Thursday.
“The civil penalty sought by the SEC in the Terraform case demonstrates the unreasonableness of the civil penalty sought in this case,” Ripple’s lawyers said. “As Ripple’s objection explains, in similar (and even more severe) cases, the civil penalties agreed to by the SEC ranged from 0.6% to 1.8% of a defendant’s gross revenues. Terraform fits that pattern.”
