According to Odaily, Ripple Labs is attempting to leverage the recent fine imposed on Terraform Labs to secure a lower penalty in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). Ripple has been embroiled in a protracted legal struggle with the SEC for several years and stated in a 'supplemental authority notice' on Thursday that the financial penalty proposed by the regulatory body is unreasonable.
The company compared the SEC's proposed $2 billion fine for its sale of XRP to institutional investors with the penalty imposed on Terraform Labs. Ripple believes its fine should be closer to $10 million. On Wednesday, Terraform agreed to pay a fine of $44.7 billion, and a judge approved the settlement agreement later on Thursday.
Ripple's lawyers stated, 'The civil penalty sought by the SEC in the Terraform case demonstrates the unreasonableness of the civil penalty sought in this case.' As explained in Ripple's opposition, in similar (or even more severe) cases, the range of civil penalties agreed to by the SEC ranges from 0.6% to 1.8% of the defendant's total income. Terraform fits this pattern.