Ripple argued that the $2 billion fine sought by the SEC was unreasonable and filed a notice of additional authority.
In its filing, #Ripple cites the Terraform Labs case and previous SEC settlements as benchmarks for determining a fair amount. Terraform entered into a $4.4 million settlement with the SEC on Thursday.
Ripple argued that in previous cases, the SEC had agreed to penalties ranging from 0.6% to 1.8% of the defendant's revenue. The company offered to pay $10 million to settle the dispute.
In the new filing, the SEC said that Ripple's comparison was flawed and inapplicable; the SEC also explained that the fine was a small percentage because Terraform Labs was in bankruptcy and had agreed to a number of measures, including burning all remaining tokens. Ripple did not agree to such terms, the SEC argued.
"Ripple ignores the fact that the defendant company is in bankruptcy, seeks to 'permanently exit the business,' agrees to burn the keys to all crypto asset securities and return a substantial amount to investors in those securities, and removes the two directors who led the company at the time of the breach," the SEC said. It said.
The SEC considered all of these factors in negotiating the settlement agreement and repeatedly cited them as facts necessary for the court to approve the settlement under applicable law," the SEC added. Ripple has not agreed to any of these remedies. " "
Finally, the SEC said it wants to settle with Ripple for $102.6 million, which is significantly less than the previously discussed fine but still considered necessary to prevent future violations.
The legal battle between the SEC and Ripple has been ongoing since December 2020, when the SEC declared Ripple's native #token , #XRP , an unregistered security.
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