<a href="https://optimisus.com/market/market-news/us-sec-chairman-hints-that-the-agency-may-be-dragging-its-feet-in-approving-spot-ether-etfs/" rel="noopener noreferrer nofollow">The US Securities and Exchange Commission (SEC)</a> has denied Ripple's effort to utilize the Terraform Labs settlement as a means to challenge a proposed $2 billion penalty.  
The regulator considered the comparison to be invalid because there were substantial disparities between the cases. Ripple contended that the SEC's request for a $2 billion fine is excessive.  
They pointed out that Terraform Labs, despite having $33 billion in sales and being responsible for fraudulent actions resulting in over $40 billion in losses, only faced a penalty of 1.27%.  
The SEC denounced Ripple's utilization of improper analogies and incorrect computations, contending that drawing a parallel between Ripple's circumstances and Terraform Labs is unfounded due to the fact that Terraform Labs is insolvent and has consented to substantial penalties, unlike Ripple.  
The SEC emphasized numerous notable distinctions between the two cases, including the cessation of operations by Terraform Labs, the deliberate destruction of keys to all its crypto asset securities, the acceptance of considerable compensation to investors, and the removal of two board members implicated in the violations. Ripple has declined to accept any such measures.  
Furthermore, the SEC stressed the need for greater sanctions for affluent defendants such as Ripple, taking into account their gross profit. By applying Terraform's penalty ratio to Ripple's $876.3 million in gross earnings, the calculated penalty would amount to $102.6 million, which is far higher than the $10 million requested by Ripple.  
Yesterday, <a href="https://optimisus.com/market/market-news/ripple-labs-argues-for-reduced-sec-penalties-by-citing-the-terraform-labs-case/" rel="noopener noreferrer nofollow">Ripple Labs Inc. has submitted a fresh notification</a> to the Southern District of New York with the intention of swaying the court’s perspective on the SEC’s suggested sanctions and ultimate ruling.

The SEC refutes Ripple’s comparison to Terraform Labs in court, insisting on a $2 billion fine

Optimisus

Other articles published on Jun 16, 2024

Crypto: Euro stablecoins booming despite the EU

MoonBag Crypto Presale Exceeds $2.2Mn as Shiba Inu and Bonk Holders Flock In Amid Experts’ $1 Per...

MoonBag Presale Shoots for the Stars as Cardano and Aave Falter in Best Presale in 2024

Investors Rush to MoonBag Best Presale in 2024 with 88% staking APY as PEPE and Floki Inu sinks

Bitcoin Taker Buy/Sell Ratio Sees Notable Spike – What Does This Mean For BTC Price?

Crypto market’s weekly winners and losers – NOT, UNI, FLOKI, ORDI

Join our free newsletter for daily crypto updates!