Breaking Crypto News – What are Ripple Labs Responds to the SEC’s Action?
Breaking Crypto News – Retaliating against the $2 billion fine imposed by the SEC, Ripple Labs claims it is exorbitant. The company emphasized the need for just and uniform regulatory actions in a notice of additional authority that it submitted on Thursday. The uniformity and equity of the sanctions levied by the SEC on the cryptocurrency industry are being called into question as this legal struggle progresses.
The central point of contention in this issue is the SEC’s demand that Ripple pay fines totaling around $2 billion for selling XRP to institutional investors. The Terraform Labs case, where serious fraud allegations were found but sanctions were much less severe, is what Ripple’s legal team compares this to. In that instance, even though their fraudulent actions wiped almost $40 billion in investor cash, Terraform Labs and its CEO, Do Hyeong Kwon, were hit with fines equal to roughly 1.27% of their $33 billion in gross sales.
Reactions to SEC’s Decision Grow
The $2 billion proposed punishment, according to Ripple’s attorneys, is much more than the standards set in situations like this. Their investigation showed that in similar cases, penalties generally varied between 0.6% and 1.8% of gross sales.
The SEC is seeking a civil penalty in this case that is significantly greater than that range, according to SEC attorneys, even though there are no allegations of fraud and institutional buyers did not suffer significant losses. Therefore, they recommend a far more reasonable penalty for Ripple, capped at $10 million—a sum that is substantially lower than the SEC’s current estimate. Ripple’s claims are supported by several legal experts.
This supplemental authority draws attention to the strange animus that the SEC continues to show towards Ripple. The behavior of the SEC towards Ripple seems very ill-motivated,
Bill Morgan
FAQ
What is the Terraform Labs Fined?
After being found guilty by a jury of scamming cryptocurrency investors who lost an estimated $40 billion when the TerraUSD and Luna tokens crashed in 2022, Terraform Labs reached a $4.47 billion civil settlement with the U.S. Securities and Exchange Commission.
What is Happening with Ripple and SEC?
The SEC requested over $2 billion from the court in its remedy request against Ripple. This amount included $900 million in disgorgement, around $200 million in pre-judgment interest on the disgorgement request, and roughly $900 million in penalties. An injunction was also requested by the SEC.
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