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 the company’s claims of unreasonable settlement charges, particularly in the Terraform Labs case.
Ripple argued that the fine imposed on them in relation to the collapse of Terraform was relatively small compared to what the SEC demanded in a case where there were no user losses. The regulator is seeking a $2 billion fine from Ripple for violating US securities laws by selling its native token, XRP, to institutional investors. However, Ripple contends that the fine should not exceed $10 million.
In its response, the SEC emphasized that charges are determined on a case-by-case basis and pointed out that Terraform Labs’ financial situation, given its bankruptcy, limits its ability to pay a higher fine. The SEC’s response to Ripple’s letter regarding the Terraform Labs Consent Judgment was shared by lawyer James K. Filan.
Ripple recently filed a response letter in support of its motion to seal data in the SEC document for adjudication and remedies. It is important to note that investing or trading cryptocurrencies carries financial risks, and the views expressed in this article are for informational purposes only.