Ripple requested a lower penalty than the SEC's $2 billion request, citing the Terraform case

Ripple Labs' lawyers are looking to take advantage of the Court's recent rulings against Terraform to reduce the fine in their case with the U.S. Securities and Exchange Commission (SEC).

Ripple, which has been in a lengthy legal battle with the SEC over the past few years, called the agency's proposed financial penalties unreasonable in a “notice of additional jurisdiction” posted on Thursday. Year. The firm compared the SEC's proposed $2 billion fine for the sale of XRP to institutional investors to the fines against Terraform Labs. Ripple has argued that their fine should be around $10 million.

Terraform agreed to pay $4.47 billion in fines on Wednesday and then on Thursday, a judge signed off on the deal.

“The civil penalties sought by the SEC in the Terraform case demonstrate the unreasonableness of the civil penalties sought by the SEC in this case,” Ripple lawyers said. “As Ripple's objection explains, in similar (and even more serious) cases, the SEC has agreed to civil penalties ranging from 0.6% to 1.8% of revenue of the defendant. Terraform fits that model.”

Ripple also cited an April jury verdict that Terraform Labs and co-founder Do Kwon committed civil fraud.

“Here, by contrast, the SEC seeks a civil penalty far beyond that scope, even though there was no allegation of fraud in this case and the Institutional Investors did not suffer major losses,” the attorneys said. know. “