{"id":23040,"date":"2024-06-18T13:00:49","date_gmt":"2024-06-18T10:00:49","guid":{"rendered":"https:\/\/coinengineer.io\/?p=23040"},"modified":"2024-06-18T14:10:46","modified_gmt":"2024-06-18T11:10:46","slug":"sec-rebuts-ripples-request-for-lower-fines","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/sec-rebuts-ripples-request-for-lower-fines\/","title":{"rendered":"SEC Rebuts Ripple\u2019s Request for Lower Fines"},"content":{"rendered":"<p>Asserting that the situation is different from the ones in the <strong>Terraform<\/strong> case,<strong> the US Securities and Exchange Commission<\/strong> responded to <strong>Ripple<\/strong>\u2019s request to have penalties reduced in its closely unrelenting battle with the regulator. Ripple was in legal trouble with the SEC since 2020; the latest occurred when it contrasted the fines imposed against Terraform Labs in a \u2018notice of supplemental authority\u2019 filed in the New York district court on June 13 against a $2 billion fine proposed by the regulator for selling to institutional investors.<\/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\/sec-rebuts-ripples-request-for-lower-fines\/#Ripples_Push_for_Lower_Fines_Compared_to_Terraform\" title=\"Ripple&#8217;s Push for Lower Fines Compared to Terraform\">Ripple&#8217;s Push for Lower Fines Compared to Terraform<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/sec-rebuts-ripples-request-for-lower-fines\/#SECs_Argument_Different_Circumstances_Between_Cases\" title=\"SEC&#8217;s Argument: Different Circumstances Between Cases\">SEC&#8217;s Argument: Different Circumstances Between Cases<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coinengineer.net\/blog\/sec-rebuts-ripples-request-for-lower-fines\/#Legal_and_Financial_Implications_for_Ripple\" title=\"Legal and Financial Implications for Ripple\">Legal and Financial Implications for Ripple<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Ripples_Push_for_Lower_Fines_Compared_to_Terraform\"><\/span>Ripple&#8217;s Push for Lower Fines Compared to Terraform<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Ripple<\/strong> said that compared to Terraform Labs, the fines suggested by the SEC were out of proportion. With Terraform, the SEC had settled for $4.47 billion including clauses prohibiting co-founder Do Kwon from serving as an officer or director of any public business and restricting participation in transactions involving &#8220;crypto asset securities.&#8221;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"SECs_Argument_Different_Circumstances_Between_Cases\"><\/span>SEC&#8217;s Argument: Different Circumstances Between Cases<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The SEC said on June 14 that the situation surrounding the Terraform issue differed greatly from that of Ripple. &#8220;In asking the Court to tether its penalty determination in this case to the settlement in Terraform, <strong>Ripple<\/strong> fails to note that the corporate defendant there is in bankruptcy, going &#8216;out of business for good,&#8217; burning the keys to all of its crypto asset securities, agreed to return a significant amount to investors in those securities, and removes two of the board members in charge at the time of the violations,&#8221; the SEC&#8217;s lawyers said.<\/p>\n<p>The SEC underlined that Ripple has consented to none of these remedies and said, &#8220;Ripple is agreeing to none of this relief\u2014in fact, Ripple is agreeing to nothing.&#8221;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Legal_and_Financial_Implications_for_Ripple\"><\/span>Legal and Financial Implications for Ripple<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Using a comparison of the Terraform penalty to total sales\u2014which would provide a 1.27% ratio\u2014Ripple argued for reduced penalties. <strong>The SEC<\/strong> argued, however, that a more fitting analogy would be to the violative behavior&#8217;s gross profit\u2014in Terraform&#8217;s instance, an 11.7% ratio. Using this percentage on Ripple&#8217;s $876.3 million in gross income would provide a much bigger penalty of $102.6 million than the $10 million Ripple suggested.<\/p>\n<p><a href=\"https:\/\/coinengineer.net\/blog\/crypto-markets-tumble-with-altcoins-taking-the-hardest-hit\/\"><em><span style=\"font-weight: 400;\">This Might Interest You: Crypto Markets Tumble with Altcoins Taking the Hardest Hit<br \/>\n<\/span><\/em><\/a><\/p>\n<p>Reacting to the SEC&#8217;s position over the weekend, <strong>Ripple<\/strong> Chief Legal Officer Stuart Alderoty said the court had made clear XRP is not a security and underlined there were no victims to reimburse. &#8220;The court made clear XRP is not a security,&#8221; Alderoty stated. &#8220;There are no &#8216;victims&#8217; to make restitution. worst of all for the SEC, ripple is flourishing. At least SEC appears to have dropped its ridiculous $2B demand.<\/p>\n<p>Alleging an unregistered securities, the SEC charged Ripple with generating $1.3 billion via XRP sales. The New York based judge Analisa Torres last year determined that variance of a blind bid allowed some of Ripple\u2019s <strong>XRP<\/strong> transactions to not be in violation of security laws meanwhile some direct sales made by ripple to institutional investors would be securities.<\/p>\n<p>The outcome of this particular case may have significant implications across regulating the management of cryptocurrencies and the disposal of virtual resources in the context of U. S. securities regulations as Ripple continues to dispute the proposed penalties.<\/p>\n<p><em><a href=\"https:\/\/t.me\/coinengineernews\"><span style=\"font-weight: 400;\">Click here to get the latest news from Coin Engineer!\u00a0<\/span><\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Asserting that the situation is different from the ones in the Terraform case, the US Securities and Exchange Commission responded to Ripple\u2019s request to have penalties reduced in its closely unrelenting battle with the regulator. Ripple was in legal trouble with the SEC since 2020; the latest occurred when it contrasted the fines imposed against<\/p>\n","protected":false},"author":6,"featured_media":10136,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,657,1],"tags":[509,3274,506],"class_list":["post-23040","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-en","category-genel","tag-ripple","tag-us-securities-and-exchange-commission-sec","tag-xrp"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SEC Rebuts Ripple\u2019s Request for Lower Fines - 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\/sec-rebuts-ripples-request-for-lower-fines\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SEC Rebuts Ripple\u2019s Request for Lower Fines - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"Asserting that the situation is different from the ones in the Terraform case, the US Securities and Exchange Commission responded to Ripple\u2019s request to have penalties reduced in its closely unrelenting battle with the regulator. 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