The U.S. Securities and Exchange Commission (SEC) has criticized Ripple Labs' (Ripple) latest demand for a reduced fine.
Last week, #Ripple cited the agreement between the SEC and Terraform Labs when it again asked New York District Court Judge Annalisa Torres on June 13 to impose a fine of "no more than $10 million.
A day later, on June 14, in a letter to Judge Torres, the SEC said the $4.5 billion settlement with Terraform and co-founder Do Kwon (including a $420 million civil penalty) was reached because the company filed bankruptcy, agreed to return funds to investors, and fired executives who were "not liable at the time of the breach. " The company said this was established in
Ripple has not agreed to any of these remedies. " "
Ripple claims Terraform's $420 million civil penalty is about 1.27% of the company's "$33 billion in total sales," but the SEC said that's not an "apples-to-apples comparison.
The SEC also compared Terraform's fine to "gross sabotage revenue" of more than $3.5 billion.
The regulator argues that Ripple's civil penalty would be $102.6 million if the same ratio were applied to the $876.3 million in gross proceeds that Ripple sought to forfeit.
Such a low penalty amount is inconsistent with the purpose of the Civil Penalties Act," the SEC said.
The SEC's proposed penalty for Ripple is about $2 billion, including $198.2 million in pre-judgment interest, a civil penalty of $876.3 million and another $876.3 million in damages.
The SEC found that Ripple sold unregistered securities, and Judge Torres agreed (but only to institutional investors).
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