![Ripple challenges SEC's US$2 bln fine, cites Terraform precedent Ripple challenges SEC's US$2 bln fine, cites Terraform precedent PlatoBlockchain Data Intelligence. Vertical Search. Ai.](https://platoblockchain.com/wp-content/uploads/2024/06/ripple-challenges-secs-us2-bln-fine-cites-terraform-precedent.jpg)
Ripple Labs Inc. is pushing back against a US$2 billion fine proposed by the U.S. Securities and Exchange Commission (SEC), advocating for a reduction by referencing Terraform Labs’ recent US$4.5 billion settlement as a comparative benchmark.
The blockchain firm’s legal team contends that the suggested penalty for their XRP sales is unduly harsh and should be closer to US$10 million, highlighting the lack of fraud allegations and minimal investor losses in their case, unlike Terraform’s.
This legal challenge follows a protracted battle with the SEC, which has accused Ripple of executing unregistered securities offerings.
In the Terraform Labs case, the SEC imposed a substantial settlement including a permanent ban for co-founder and former CEO Kwon Do-hyung from holding certain corporate positions.
The SEC’s lawsuit against Ripple, which began in December 2020 with allegations of the company raising US$1.3 billion through unregistered XRP sales, has been under intense scrutiny from the cryptocurrency sector due to its potential impact on digital asset classification and regulation.
Ripple scored a partial victory in the case where the judge ruled that the company’s public sale of XRP did not violate security rules while institutional sales did.
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- Source: https://forkast.news/ripple-challenges-secs-us2-bln-fine-cites-terraform-precedent/
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