SEC Pursues $102.6 Million Penalty from Ripple, Rejecting $10 Million Proposal

The SEC seeks a $102.6 million penalty from Ripple, rejecting the company’s $10 million proposal as insufficient to meet civil penalty statutes’ purposes.

Bollywood Fever: The U.S. Securities and Exchange Commission (SEC) is seeking a $102.6 million penalty from Ripple Labs, significantly reducing its initial demand of nearly $2 billion. Ripple had proposed a $10 million penalty, referencing the recent settlement with Terraform Labs. However, the SEC argued that such a low penalty “would not satisfy the purposes of the civil penalty statutes.”

SEC Rejects Ripple’s $10 Million Proposal

Ripple’s request for a reduced penalty in the ongoing XRP case was met with firm opposition from the SEC. Ripple drew parallels to the Terraform Labs settlement, suggesting a penalty of $10 million. In response, the SEC explained to District Judge Analisa Torres in a June 14 letter that Ripple’s comparison was flawed.

SEC’s Argument

The SEC highlighted significant differences between the Ripple case and the Terraform Labs settlement. The regulator noted that Terraform Labs is in bankruptcy and agreed to cease operations permanently. Terraform also committed to burning “the keys to all of its crypto asset securities,” returning a substantial amount to investors, and removing board members involved in the violations.

Conversely, Ripple has not agreed to any similar relief. The SEC emphasized that Ripple continues to profit from its conduct and has not acknowledged any violation of securities laws.

Discrepancy in Penalty Calculation

The SEC criticized Ripple’s comparison of the Terraform penalty to gross sales, noting that a more accurate comparison would be to gross profits. The SEC pointed out that the penalty ratio for Terraform was 11.7% of gross profits, which would translate to a much larger penalty for Ripple.

SEC’s Conclusion

The SEC concluded that applying the same ratio to Ripple’s $876.3 million in gross profits justifies a $102.6 million penalty, far exceeding Ripple’s proposed $10 million. The regulator asserted that a $10 million penalty would be insufficient to meet the objectives of the civil penalty statutes, which aim to punish and deter violations.

Also Read, Indian High Court Rules Cryptocurrency Dealings Legal Under Indian Law

NFT Sales Surge by 10.95%: Bitcoin and Ethereum Dominate Market

Pooja Chauhan
Pooja Chauhan

Pooja Chauhan: Your Source for Entertainment and Box Office News

Pooja Chauhan is a passionate writer and dedicated journalist specializing in delivering the latest updates and insights from the world of entertainment and box office. With a keen eye for detail and a deep love for cinema, Pooja brings her readers accurate and engaging coverage of all things related to movies, celebrities, and the dynamic world of showbiz. Her commitment to keeping her audience well-informed and entertained makes her a valuable voice in the realm of entertainment journalism. When she's not busy uncovering the latest scoops, Pooja enjoys exploring classic films and indulging in creative writing."
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