- Ripple defends Terraform Labs and calls the SEC’s $4.47 Billion penalty unfair.
- Terraform Labs claims that its fine should not be more than $10 million. financial constraints.
Ripple Labs, Inc. supports the US Securities and Exchange Commission’s (SEC), which has asked the court to annul the fine. Terraform Labs.
On June 12, the SEC demanded that Terraform, and Do Kwon its creator pay $420,000,000 in civil penalties, and $3.58 Billion in disgorgement. According to claims made by Kwon, his former company and investors that they misled them about bitcoin products which resulted in a loss of $40 billion the settlement total amounts to $4.47 Billion.
🚨BREAKING: @Ripple The Court files a Notice of Supplemental Authority in relation to the TerraForm Labs Consent Judgement.
This case SEC v. RIPPLE could be over at any time! #XRP pic.twitter.com/4n5RF5SiHY
— JackTheRippler ©️ (@RippleXrpie) June 13, 2024
Ripple’s Stand on Penalty
The court found Kwon Terraform Labs is guilty of orchestrating one of the largest securities frauds ever committed in American history. Ripple believes that the SEC proposal is irrational. It represents 1.27% Terraform’s $33billion gross sales. Ripple notes that SEC requests smaller payments for more serious situations. submitted An additional authority notice.
The majority of civil SEC penalties according to RipplePenalties range from 0.6% to 1.8%. For the worst offenses, penalties are as high as 1.8%. Ripple thinks Terraform Labs is a part of this group, and the market does not agree with SEC’s tougher penalties.
Terraform Labs is not a case of fraud or significant institution investment losses.
Terraform Labs’ Financial Constraints
Terraform Labs argues that due to its bankruptcy and $75 million of Assets Under Management, it is unable to pay this outrageous amount. The penalty fee for the disgorgement should therefore not be more than $10 million.
Paul Grewal, CLO at Coinbase, said that $7 million was enough and challenged the effectiveness of the SEC settlement demand.
This case could affect lawsuits related to SEC rules, including the Ripple dispute that has been going on for three years.
As of this writing, XRP’s price is currently at $0.479Down 1.53% In the last 24 hours, and showing a negative stance for the past 7 days. 8.16%According to CoinMarketCap, the data is a bit different. CNF reported that Ripple’s CEO was not present at the conference. hinted On September 21, the SEC case could be closed.
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Source: www.crypto-news-flash.com