{"id":22816,"date":"2024-06-14T11:30:15","date_gmt":"2024-06-14T08:30:15","guid":{"rendered":"https:\/\/coinengineer.io\/?p=22816"},"modified":"2024-06-14T09:29:44","modified_gmt":"2024-06-14T06:29:44","slug":"ripple-lawyers-push-back-against-2-billion-penalty","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/ripple-lawyers-push-back-against-2-billion-penalty\/","title":{"rendered":"Ripple Lawyers Push Back Against $2 Billion SEC Penalty"},"content":{"rendered":"<p>Seeking to pay a lower penalty in its dispute with the <a href=\"https:\/\/www.sec.gov\/\">U.S. Securities and Exchange Commission<\/a>, lawyers for <strong>Ripple Labs<\/strong> are attempting to use fines already imposed against Terraform.<\/p>\n<p><strong>Ripple<\/strong>, which has been in a protracted legal fight with the SEC over the past few years, claimed on Thursday that financial penalties suggested by the agency were irrational in a <em>&#8220;notice of supplemental authority.<\/em>&#8221; The company contrasted fines against Terraform Labs against the SEC&#8217;s suggested $2 billion fine for selling XRP. <strong>Ripple<\/strong> has maintained that the penalties ought to be around $10 million.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/ripple-lawyers-push-back-against-2-billion-penalty\/#Comparing_Penalties_with_Terraform\" title=\"Comparing Penalties with Terraform\">Comparing Penalties with Terraform<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/ripple-lawyers-push-back-against-2-billion-penalty\/#Ripples_Defense_Against_Excessive_Penalties\" title=\"Ripple&#8217;s Defense Against Excessive Penalties\">Ripple&#8217;s Defense Against Excessive Penalties<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Comparing_Penalties_with_Terraform\"><\/span>Comparing Penalties with Terraform<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The judge signed off on the settlement after Terraform agreed to pay fines of $4.47 billion on Wednesday and subsequently on Thursday.<\/p>\n<p><span style=\"color: #0000ff;\"><em>This Might Interest You: <a style=\"color: #0000ff;\" href=\"https:\/\/coinengineer.net\/blog\/privado-id-new-era-of-self-sovereign-identity\/\">Privado ID: New Era of Self-Sovereign Identity and Security<\/a><\/em><\/span><\/p>\n<p>&#8220;<em>The civil penalty sought by the SEC in Terraform shows the unreasonableness of the civil penalty sought by the SEC in this case<\/em>,&#8221; <strong>ripple&#8217;s<\/strong> lawyers argued. &#8220;<em>As <strong>Ripple&#8217;s<\/strong> opposition stated, the SEC has consented to civil penalties ranging from 0.6% to 1.8% of the defendant&#8217;s gross profits in similar (and even more egregious) circumstances. Terraform conforms to that pattern<\/em>.&#8221;<\/p>\n<p><strong>Ripple<\/strong> also mentioned the April judgment verdict finding Terraform Labs and cofounder Do Kwon engaged in civil fraud.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Ripples_Defense_Against_Excessive_Penalties\"><\/span>Ripple&#8217;s Defense Against Excessive Penalties<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><em>&#8220;Here, by contrast, the SEC seeks a civil penalty far exceeding that range, even though there are no allegations of fraud in this case and institutional buyers did not suffer substantial losses<\/em>,&#8221; the lawyers noted. <em>&#8220;Terraform thus confirms that the Court should reject the SEC\u2019s disproportionate and unprecedented request and that an appropriate civil penalty would be no more than $10 million.&#8221;<\/em><\/p>\n<p>Years after the SEC said the company raised $1.3 billion via XRP, which it claims is an unregistered security, the SEC and <strong>Ripple<\/strong> have been fighting in court. Judge Analisa Torres of New York decided last year that a blind bid system in place for XRP allowed some of company&#8217;s sales\u2014called programmatic\u2014not to violate securities laws. She did, however, decide that other direct token sales to institutional investors qualified as securities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Seeking to pay a lower penalty in its dispute with the U.S. Securities and Exchange Commission, lawyers for Ripple Labs are attempting to use fines already imposed against Terraform. Ripple, which has been in a protracted legal fight with the SEC over the past few years, claimed on Thursday that financial penalties suggested by the<\/p>\n","protected":false},"author":6,"featured_media":22818,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[509,1813,39,3647],"class_list":["post-22816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-ripple","tag-ripple-labs","tag-sec","tag-terraform"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ripple Lawyers Push Back Against $2 Billion SEC Penalty - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/ripple-lawyers-push-back-against-2-billion-penalty\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ripple Lawyers Push Back Against $2 Billion SEC Penalty - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"Seeking to pay a lower penalty in its dispute with the U.S. Securities and Exchange Commission, lawyers for Ripple Labs are attempting to use fines already imposed against Terraform. 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