The U.S. Securities and Exchange Commission (SEC) has opposed Ripple’s efforts to reduce its fines, stating that the firm “is not admitting anything.”
The SEC rejected Ripple’s request for lower fines in its lawsuit against the regulator, saying last week that the circumstances were different when determining penalties for Terraform.
Ripple, which has been in a legal battle with the SEC since 2020, compared the regulator’s proposed $2 billion penalty for selling to institutional investors to penalties imposed on Terraform Labs in a “notice of additional authority” filed in New York district court on June 13.
However, the SEC argued on June 14 that Terraform and Ripple had different terms. SEC’s lawyers said, “Ripple, which asked the court to tie the criminal decision in this case to the settlement in Terraform, stated that the corporate defendant here is in liquidation, ‘completely bankrupt’ and that all cryptocurrency “It fails to note that it burned the keys to its securities, agreed to return a significant amount to investors in those securities, and dismissed two of the board members responsible at the time of the violations.”
“Ripple is not accepting any of these damages, in fact, Ripple is not accepting anything,” the SEC added.
Terraform agreed to pay $4.47 billion as part of a settlement with the SEC signed by a judge last week. The agreement includes barring Terraform co-founder Do Kwon from becoming an officer or director of any public company and barring them from engaging in transactions involving “cryptoasset securities.”
The SEC said in a statement on Friday that the fine amounts between the two companies are an “apples to pears comparison”:
“Ripple avoids comparing the penalty for the Terraform deal to the gross profits of the violated conduct. This rate ($420 million/$3.58 billion) is significantly higher: 11.7%. “When this rate is applied to the $876.3 million gross profit that the SEC requested from the Court, a penalty of $102.6 million results, which is a much larger figure than the $10 million cap that Ripple insists on.”
*This is not investment advice.
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