Pro-XRP Lawyer Says SEC Did Not Drop Its $2B Demand to $102M in Ripple Case

Pro-XRP Lawyer Says SEC Did Not Drop Its $2B Demand to $102M in Ripple Case

Time Stamp: June 18, 2024 5:27 AM
Pro-XRP Lawyer Says SEC Did Not Drop Its $2B Demand to $102M in Ripple Case PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Prominent lawyer Jeremy Hogan clears misconception surrounding the SEC’s latest brief in the Ripple lawsuit, emphasizing that the regulator did not drop its $2B demand to $102M. 

Recall that Ripple leveraged the TerraForm Labs’ (TFL) settlement to support its argument for a $10M penalty. Ripple argued that the difference between TFL’s civil penalty of $420M and the company’s gross sales of $33B is around 1.27%. 

In response, the SEC disagreed with the presentation, noting that Ripple should apply the logic to TFL’s civil penalty and disgorgement of $3.58B. Comparing the difference between the agreed civil penalty and disgorgement in the TFL case, the SEC arrived at a ratio of 11.7%. 

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Applying the 11.7% ratio to the $876.3M the SEC seeks as disgorgement in the Ripple case, the SEC noted that the civil penalty should be $102.6M instead of the $10M fine proposed by the defendant. 

Pro-XRP Lawyer Addresses Misconception

Following the SEC’s presentation, some XRP enthusiasts speculated that the SEC had dropped its initial request of $2B to $102.6M. Consequently, Attorney Hogan addressed the growing misconception, emphasizing that the SEC is not demanding $102M in fines. 

The pro-XRP lawyer said the SEC only used a comparative legal approach based on Ripple’s logic on the TFL settlement to determine that the potential penalty should be $102M. 

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Furthermore, Attorney Hogan shared his previous prediction regarding the lawsuit, where he projected that the court could impose a fine of $100M against Ripple and a permanent injunction on institutional sales of XRP. 

Top Lawyer Shares Similar Sentiment 

Adding to Attorney Hogan’s analysis, Australian-based lawyer Bill Morgan shared a similar sentiment in a recent X post. According to Morgan, the SEC’s brief was misinterpreted to suggest that the SEC dropped its $2B remedies demand to $102M. 

The top lawyer accused ‘specific XRP influencers’ of spreading this false theory about the SEC’s demands. 

Meanwhile, the XRP community is awaiting the court’s imminent final decision, which could potentially end the multi-year lawsuit at the District Court level. It remains to be seen whether any of the parties will appeal the decision in the Second Circuit. 

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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