The ongoing legal clash between Ripple Labs and the US Securities and Exchange Commission (SEC) shows no signs of slowing down, with the SEC standing firm on Ripple’s attempts to negotiate penalties related to the sale of XRP. Ripple, accused of selling $1.3 billion worth of XRP as unregistered securities since 2020, argues that the proposed fines are disproportionately harsh compared to similar cases.
In a recent move, Ripple sought to convince the SEC to reconsider the $2 billion fine by drawing a parallel with the Terraform Labs case. Terraform faced penalties after filing for bankruptcy, which included severe restrictions on co-founder Do Kwon. However, the SEC emphasized the vast differences between the two cases, pointing out that Terraform had agreed to significant relief measures, while Ripple had not made any comparable concessions.
Ripple’s arguments included a proposal for fines not exceeding $10 million, based on a percentage comparison with Terraform’s gross sales. However, the SEC countered that such a comparison was invalid due to differences in gross profit margins, suggesting that applying a similar approach to the Ripple case would result in a much higher fine of approximately US$102.6 million.
In response, Ripple’s chief legal officer, Stuart Alderoty, asserted that “the court clarified that XRP is not a security.” Alderoty highlighted that Ripple continues to thrive despite the SEC’s stringent demands, stating that there are no victims in need of compensation.
This ongoing legal battle underscores the intricate regulatory landscape surrounding cryptocurrencies and showcases Ripple’s efforts to mitigate the impact of sanctions on its operations while challenging the SEC’s allegations.
Disclaimer: The opinions expressed in this article are for informational purposes only and do not constitute financial or investment advice. Investing in cryptocurrencies carries a risk of financial loss.