As a researcher with extensive experience in the crypto industry, I find Ripple’s argument in this legal dispute against the SEC intriguing. The recent TerraForm Labs consent judgment provides a compelling comparison for Ripple to challenge the SEC’s demands.
As a crypto investor following the developments between Ripple and the SEC closely, I’m excited to share that Ripple has brought up an interesting argument in their ongoing legal battle with the Securities and Exchange Commission (SEC). In response to the regulator’s recent demands, Ripple has referenced the recent consent judgment of TerraForm Labs as a precedent. This move could potentially strengthen their case and shift the narrative in their favor. Keep an eye on this space for further updates!
The company submitted a supplementary argument, likening its situation to the Securities and Exchange Commission’s (SEC) previous actions against TerraForm Labs, the entity responsible for the notorious Luna cryptocurrency.
Yesterday, I learned that the SEC’s legal action against Terra resulted in a substantial settlement being approved by the New York District Court. The company now faces a staggering fine of $4.47 billion for what has been described as one of the largest securities frauds in U.S. history. As a shareholder, I’m also informed that Terra’s ex-CEO, Do Kwon, is personally liable to repay over $204 million.
TerraForm Labs was held accountable for artificially increasing transaction figures and tampering with token values, leading to a devastating financial loss of approximately $40 billion for investors.
Ripple’s argument
As a researcher examining this legal dispute between Ripple and the SEC, I’ve noticed that Ripple’s legal team is making an argument against the proposed $2 billion penalty for institutional XRP sales by referencing comparable penalties in other cases. They claim that the penalty sought by the regulatory body appears excessively high under these circumstances.
Ripple points out that the SEC’s fine against TerraForm Labs amounted to around 1.27% of the company’s $33 billion in total sales. However, in the ongoing “XRP case,” the SEC is aiming for a penalty much greater than this percentage, despite no claims of fraud or substantial losses reported by institutional investors.
As a crypto investor, I believe Ripple is strongly contesting the regulator’s demand, arguing it sets an unprecedented and unreasonable precedent. In my opinion, a fitting civil penalty should not exceed $10 million. By referencing the TerraForm Labs judgment, Ripple aims to shed light on the inconsistencies in penalty assessments, striving for a fairer outcome in this situation.
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2024-06-14 15:31