Rehashed Ripple Controversy: New Evidence Emerges in SEC Battle
When it comes to the ongoing battle between Ripple Labs and the Securities and Exchange Commission (SEC), the plot thickens. Ripple, the company behind the XRP token, has recently made a bold claim regarding its proposed penalty in light of new evidence from a $4.5 billion Terraform Labs settlement. This development suggests that Ripple may be seeking a reduction in its proposed penalty to a mere $10 million. Let’s delve deeper into this controversy and explore the implications of this new evidence.
Ripple’s Argument: A Closer Look at the Numbers ๐งฎ
- Ripple Labs, the company behind the XRP token, faces a proposed civil penalty of $2 billion from the SEC.
- This penalty includes $876 million in disgorgement, $198 million in prejudgment interest, and an additional $876 million civil penalty.
- However, Ripple is now citing the recent Terraform Labs settlement as a basis for reconsidering its penalty.
The Terraform Labs Settlement: A Game-Changer for Ripple’s Case
- In the Terraform Labs case, a $40 billion investor loss resulted in a $3.6 billion disgorgement and $420 million in civil penalties.
- This adds up to a total settlement amount slightly exceeding $4 billion.
- Ripple emphasizes that this civil penalty represents approximately 1.27% of defendants’ $33 billion gross sales.
Ripple’s Legal Defense: A Case of Unjust Treatment? โ๏ธ
- While the SEC’s proposed penalty for Ripple exceeds the standard range, the absence of fraud allegations and substantial losses for institutional buyers raises questions about the fairness of the penalty.
- Ripple’s lawyers argue that the SEC is seeking an excessively high penalty without sufficient grounds.
Hot Take: Ripple Fires Back in SEC Showdown ๐ฅ
As the drama unfolds between Ripple Labs and the SEC, Ripple appears to be leveraging recent legal developments to bolster its defense. The ongoing dispute underscores the complexity of regulatory battles in the crypto sphere and raises critical questions about fairness and proportionality in regulatory enforcement. Stay tuned as Ripple’s battle with the SEC continues to unfold.
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