TechFlow news, according to The Block, Ripple Labs' attorneys are attempting to leverage the U.S. SEC's recent penalty against Terraform Labs as part of their effort to secure a lower fine in their ongoing case against the SEC.
Ripple has been engaged in a prolonged legal battle with the SEC over several years. In a "supplemental notice of authority" filed on Thursday, the company argued that the regulatory agency's proposed financial penalty is unreasonable. Ripple compared the SEC's proposed $2 billion fine for its sales of XRP to institutional investors with the penalty imposed on Terraform Labs.
Ripple contends that its penalty should be closer to $10 million. On Wednesday, Terraform agreed to pay $4.47 billion in penalties, and a judge approved the settlement agreement on Thursday evening. Ripple’s lawyers stated: “The civil penalties sought by the SEC in the Terraform case demonstrate the unreasonableness of the civil penalties sought in this case.”
“As Ripple’s opposition explained, in comparable (and even more egregious) cases, the civil penalties accepted by the SEC have ranged from 0.6% to 1.8% of the defendants’ total revenue. Terraform fits within this pattern.”
