- The SEC has rejected Ripple’s $10 million settlement proposal.
- The SEC demands a heftier penalty, arguing that the comparison to the Terraform Labs settlement is misleading.
Following the development of Ripple’s ongoing legal battle with the SEC, initially reported by CNF as seeing a reduction in penalties, tensions have escalated. The SEC has rejected Ripple’s $10 million settlement proposal and is pushing for a heftier penalty, arguing that comparing it to the $4.47 billion Terraform Labs settlement is misleading and inappropriate for determining penalties.
SEC’s Response to Ripple’s Letter
In a tweet, James K. Filan highlighted that the SEC has responded to Ripple’s letter concerning the Terraform Labs Consent Judgment. He shared the document related to the case SEC v. Ripple Labs, Inc., et al., No. 20 Civ. 10832 (AT) (SN) (S.D.N.Y.).
#XRPCommunity #SECGov v. #Ripple #XRP @SECGov has responded to @Ripple’s letter regarding the TerraForm Labs Consent Judgment. pic.twitter.com/VvGSJffwa8
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) June 14, 2024
The letter from Jorge Tenreiro, representing the SEC, addresses Ripple Labs Inc.’s citation of a proposed settlement in SEC v. Terraform Labs, Inc. to oppose the SEC’s remedies motion. Tenreiro argues that settlements are unsuitable benchmarks for litigated contexts due to unique case circumstances.
The SEC highlights differences between the Terraform and Ripple cases, particularly in financial conditions and willingness to cease violative conduct, and disputes Ripple’s comparison of penalty ratios, asserting they are misleading.
Key Differences Between Terraform and Ripple Cases
- Limited Value of Settlements in Litigated Contexts:
- Settlements have limited value for determining remedies in litigation due to unique case circumstances.
- Differences Between Cases:
- Terraform is bankrupt, ceasing operations, and returning funds to investors, unlike Ripple.
- Misleading Penalty Ratio Comparisons:
- Terraform’s penalty ratio to gross profit is 11.7%, far higher than the 1.27% ratio Ripple suggests. Applying this ratio to Ripple would result in a $102.6 million penalty, not the $10 million Ripple proposes.
SEC’s Position on Necessary Penalty
The SEC rejects the $10 million settlement, arguing that a heftier penalty is needed to punish and deter Ripple’s ongoing violations. Only a substantial penalty will meet the objectives of the civil penalty statutes and hold Ripple accountable.
Despite the ongoing legal situation, Ripple (XRP) is valued at $0.4934, with a 1.61% decrease in the past day and a 2.96% increase over the past week. See the XRP price chart below.
Recommended for you:
Credit: Source link
