A recent development has taken place in the ongoing legal battle between
Ripple
and the US Securities and Exchange Commission (SEC). The SEC has filed its response to Ripple in the lawsuit, following allegations made by the company regarding unreasonable settlement charges, particularly in the Terraform Labs case.
Ripple argued that the fine imposed on them in the Terraform case was relatively small compared to the losses suffered by users in the collapse of Terraform. They pointed out that the SEC’s demand for a much larger fine in a case where there were no user losses was unjust.
In the current case, the SEC is seeking a $2 billion fine for Ripple’s violation of US securities law in connection with the sale of its native token, XRP, to institutional investors. However, Ripple contends that the fine should not exceed US$10 million.
In its response to Ripple, the SEC emphasized that charges are determined on a case-by-case basis. The SEC argued that the fines imposed on Terraform Labs were lower considering various important factors. The SEC also noted that Terraform Labs is currently in bankruptcy and lacks the financial resources to pay a higher fine.
Notably, attorney and former federal prosecutor James K. Filan shared the SEC’s response document on June 14 regarding the Terraform Labs Consent Judgment. Ripple, in a recent move, filed a response letter supporting its motion to seal data in the SEC document for adjudication and remedies.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice. Investing in cryptocurrencies carries a risk of financial loss.
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