Ripple Cites SEC v. Terraform to Reduce Penalty
3 min read
Ripple Cites SEC v. Terraform to Reduce Penalty
In a recent court filing, Ripple’s legal representatives have requested the court to impose what they deem a “reasonable” civil penalty in their ongoing legal battle against the United States Securities and Exchange Commission (SEC). This move follows a settlement between the SEC and Terraform Labs, setting a precedent Ripple hopes to use to its advantage.
On June 13, Ripple’s legal team filed a notice of supplemental authority in the Southern District of New York. In this notice, they argued that the SEC’s proposed civil penalty against Ripple is “unreasonable.” They leveraged the agreement in the Terraform Labs case as a comparative example, hoping to sway the court in their favor.
In the Terraform case, a federal judge sanctioned a $4.5 billion settlement between the SEC and Terraform Labs, along with its co-founder, Do Kwon. The SEC has demanded that Ripple pay around $2 billion, which includes disgorgement, prejudgement interest, and civil penalties. Ripple, Contends that the penalty should not exceed $10 million.
Ripple’s lawyers drew parallels to other cases, such as those involving Block.one, Genesis Global Capital, and Telegram. They pointed out that in these instances, the SEC agreed to civil penalties ranging from 0.6% to 1.8% of the defendants’ gross revenues. They argued that the Terraform Labs case fits this pattern, emphasizing that the SEC’s penalty request against Ripple goes far beyond this established range, despite the absence of fraud allegations and significant losses among institutional buyers.
The Ripple legal saga is among the most protracted in the cryptocurrency industry. This latest filing adds another chapter to the tale, which began in December 2020 when the SEC accused Ripple of using XRP as an unregistered security to raise funds. A landmark ruling in July 2023 by Judge Analisa Torres declared that the XRP token was not a security in relation to programmatic sales on exchanges, marking a significant precedent in the case.
In October 2023, the SEC decided to pull back its case against Ripple’s CEO, Brad Garlinghouse, and executive chair, Chris Larsen, announcing that it planned to discuss potential remedies with the blockchain firm. This decision arrived after Judge Torres had scheduled an initial trial to begin in April but later postponed the proceedings indefinitely.
Ripple’s request for a reasonable penalty not only highlights their strategy to align with past SEC actions but also underscores the contentious nature of their long-standing legal battle. The blockchain company maintains that their penalty should be limited, especially in the context of previous settlements where the penalties were significantly lower.
As of now, it remains uncertain when the trial between Ripple and the SEC will resume. The court has yet to appoint a new date, leaving the case in a state of limbo. The ongoing legal uncertainties continue to cast a shadow over Ripple and its future operations in the cryptocurrency landscape.
This case will undoubtedly continue to attract widespread attention, as its resolution could set another crucial precedent for how cryptocurrency regulations are enforced in the United States. Both parties appear resolute, ensuring that each legal maneuver will be closely scrutinized by industry stakeholders and legal experts alike.
Ripples penalty should match the scale of their violations. No shortcuts here.
SEC should push for every cent Ripple owes. Letting them off easy sets a dangerous precedent.
Comparing themselves with Terraform Labs is a weak move. Ripple should face the music. ⚖️😡
Their arguments sound like excuses more than justifications. Should’ve thought about this before breaking the rules.
Ripple’s plea for a ‘reasonable’ penalty is just damage control after getting caught.
Proud of Ripple for taking a stand. They’re fighting the good fight!
Cant wait to see how this affects future crypto regulation cases!
Ripple’s dedication is remarkable. Let’s hope for a fair verdict!
Seriously, why should Ripple get a lighter penalty? $2 billion sounds fair for the mess theyve caused.
The comparison to other cases is a brilliant move. Ripples legal team is top-notch!
Ripple is setting a new standard in the crypto legal battle. Go Ripple! 🚀👏
Same story, different day. Ripple keeps dragging this out and it’s exhausting. Just settle already.
You can’t just cherry-pick cases that suit you, Ripple. Own up to your mistakes.
Peng Ripple’s persistence! Setting a precedent for responsible crypto regulations.
Ripple’s ‘strategy’ is just desperate grasping at straws. The SEC won’t back down so easily.
So proud to see Ripple stand their ground. A fair outcome is all we need.
Ripples persistence is admirable. No one should face unreasonable penalties!
Ripple really knows how to fight for whats fair! Go team Ripple!
Ripple’s logic in reducing penalties to 0.6-1.8% makes so much sense! Well argued! 🧠👏
This court filing shows Ripple’s commitment to justice. What a milestone!
The comparison to the Terraform case is spot on! Ripple’s lawyers are really sharp.
Ripple’s strategy is on point by bringing up past SEC cases. Well done! 👏🔍
Ripple’s resilience in this legal battle is truly commendable. Keep pushing for fairness! 💪🌟
Finally, a fair approach to penalties. Ripple is leading the way!
Enough with the legal drama, Ripple. Remember when transparency actually mattered? 🚪👀
SEC demands $2 billion?! Ripple’s right to push back! 📚⚖️
They’re fighting over penalties while the rest of us wonder if XRP is even safe to hold. 🤷♂️💸
Ripple’s endless legal back-and-forth is just wasting everyone’s time. Pay up and move on!
It’s incredible to see Ripple leveraging the Terraform Labs case! Smart strategy!
Ripple fighting for a reasonable penalty is so inspiring. They truly care about fairness. 👏🔥
Ripple is making sure there’s fairness in the crypto space. That’s leadership! 🌟💼
It’s amazing how Ripple is using historical data to fight their case. Smart!
I’ve been rooting for Ripple, and this move gives me even more reason to!
SEC’s demands seem so excessive compared to Terraform. Ripple’s approach is logical.
Is it just me, or does Ripple asking for leniency feel more like an admission of guilt?
How about Ripple focuses on compliance instead of legal dodges? The industry needs better examples.
What a clever legal strategy by Ripple! Theyre truly paving the way for everyone in crypto.
Wouldn’t trust Ripple at this point even if they paid no penalty. Reputation matters more than fines.