News Flash: SEC Rejects Ripple’s Lower Penalty Argument
Ripple Labs’ latest argument requesting a reduction in fines has been criticized by the U.S. Securities and Exchange Commission (SEC), who is standing firm on their proposed total penalty of nearly $2 billion. This includes $198.2 million in prejudgment interest, $876.3 million in civil penalties, and another $876.3 million in disgorgement.
The SEC argues that Ripple’s fines should be calculated based on the gross profits from their wrongful conduct, rather than total sales. If Terraform’s fine ratio (close to 12%) were applied to Ripple, their fine would be $102.6 million. The SEC believes that such a low fine would not serve the purpose of civil penalty regulations. Since the SEC accused Ripple of selling unregistered securities in 2020, the two parties have been embroiled in a legal battle in court. Judge Torres has confirmed Ripple’s wrongdoing, but limited it to sales to institutional investors. Currently, the legal battle between the two parties is ongoing.
Tags: Ripple, SEC, Terraform Labs
Source Link:
https://cointelegraph.com/news/sec-rebuffs-ripple-lower-penalty-argument