Ripple Objected to $2 Billion Fine, Cited This Case as an Example
Ripple Labs plans to use penalties against Terraform Labs to reduce the penalty amount in its case with the US Securities and Exchange Commission (SEC).
The US Securities and Exchange Commission (SEC) is demanding that the court impose a $2 billion fine on Ripple for selling XRP to institutional investors.
The SEC filed a lawsuit against the company, claiming that XRP was an unregistered security and that the company collected $1.3 billion by selling XRP.
He cited Terraform Labs as an example
In its ongoing legal battle with the SEC over the last few years, Ripple stated that the financial penalties proposed by the agency were unreasonable.
In its statements yesterday, Ripple compared the $2 billion penalty proposed by the SEC for the sale of XRP to institutional investors with the penalties imposed on Terraform Labs. Ripple argued that its own fine should be closer to $10 million.
Terraform, the developer of the LUNA token, agreed to pay a $4.47 billion fine on Wednesday. The judge approved the settlement plan on Thursday.
“The fine requested by the SEC on Terraform demonstrates the unreasonableness of the fine requested in this case,” Ripple’s lawyers said. “The SEC has adopted fines ranging from 0.6% to 1.8% of defendants' gross income in similar and even more severe cases. "Terraform fits this model," it said.
Fraud was emphasized
Ripple lawyers reminded that it was decided that Terraform Labs and its founder Do Kwon were committing fraud.
“Unlike this case, the SEC is demanding a penalty that exceeds this limit, even though there is an allegation of fraud and institutional investors have not suffered major losses,” it said. The SEC has not yet responded to Ripple's statements.