Value

Saga

James

<ul>
 <li><strong>The SEC has rejected Ripple’s $10 million settlement proposal.</strong></li>
 <li><strong>The SEC demands a heftier penalty, arguing that the comparison to the Terraform Labs settlement is misleading.</strong></li>
</ul>
<p>Following the development of <a href="https://www.crypto-news-flash.com/gary-gensler-and-sec-relent-ripple-faces-reduced-102-million-penalty-in-xrp-case/" rel="noopener noreferrer nofollow">Ripple’s ongoing legal battle with the SEC</a>, initially reported by CNF as seeing a reduction in penalties, tensions have escalated. The SEC has rejected Ripple’s $10 million <a href="https://www.crypto-news-flash.com/sec-vs-ripple-xrp-price-reaction-and-settlement-outlook/" rel="noopener noreferrer nofollow">settlement proposal</a> and is pushing for a heftier penalty, arguing that comparing it to the $4.47 billion Terraform Labs settlement is misleading and inappropriate for determining penalties.</p>
<h2 id="sec-s-response-to-ripple-s-letter">SEC’s Response to Ripple’s Letter</h2>
<p>In a <a href="https://x.com/FilanLaw/status/1801755432102383850" target="_new" rel="noopener noreferrer nofollow">tweet</a>, James K. Filan highlighted that the SEC has responded to Ripple’s letter concerning the Terraform Labs Consent Judgment. He shared the document related to the case SEC v. Ripple Labs, Inc., et al., No. 20 Civ. 10832 (AT) (SN) (S.D.N.Y.).</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/XRPCommunity?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#XRPCommunity</a> <a href="https://twitter.com/hashtag/SECGov?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#SECGov</a> v. <a href="https://twitter.com/hashtag/Ripple?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Ripple</a> <a href="https://twitter.com/hashtag/XRP?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#XRP</a> <a href="https://twitter.com/SECGov?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@SECGov</a> has responded to <a href="https://twitter.com/Ripple?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@Ripple</a>’s letter regarding the TerraForm Labs Consent Judgment. <a href="https://t.co/VvGSJffwa8" rel="noopener noreferrer nofollow">pic.twitter.com/VvGSJffwa8</a></p>
 <p>— James K. Filan <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f1fa-1f1f8.png" alt="🇺🇸" class="wp-smiley" style="height: 1em; max-height: 1em;"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f1ee-1f1ea.png" alt="🇮🇪" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@FilanLaw) <a href="https://twitter.com/FilanLaw/status/1801755432102383850?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 14, 2024</a></p>
</blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>The letter from Jorge Tenreiro, representing the SEC, addresses Ripple Labs Inc.’s citation of a proposed settlement in SEC v. Terraform Labs, Inc. to oppose the SEC’s remedies motion. Tenreiro argues that settlements are unsuitable benchmarks for litigated contexts due to unique case circumstances.</p>
<p>The SEC highlights differences between the Terraform and Ripple cases, particularly in financial conditions and willingness to cease violative conduct, and disputes Ripple’s comparison of penalty ratios, asserting they are misleading.</p>
<h2 id="key-differences-between-terraform-and-ripple-cases">Key Differences Between Terraform and Ripple Cases</h2>
<ol>
 <li><strong>Limited Value of Settlements in Litigated Contexts:</strong>
  <ul>
   <li>Settlements have limited value for determining remedies in litigation due to unique case circumstances.</li>
  </ul></li>
 <li><strong>Differences Between Cases:</strong>
  <ul>
   <li>Terraform is bankrupt, ceasing operations, and returning funds to investors, unlike Ripple.</li>
  </ul></li>
 <li><strong>Misleading Penalty Ratio Comparisons:</strong>
  <ul>
   <li>Terraform’s penalty ratio to gross profit is 11.7%, far higher than the 1.27% ratio Ripple suggests. Applying this ratio to Ripple would result in a $102.6 million penalty, not the $10 million Ripple proposes.</li>
  </ul></li>
</ol>
<h2 id="sec-s-position-on-necessary-penalty">SEC’s Position on Necessary Penalty</h2>
<p>The SEC rejects the $10 million settlement, <a href="https://www.crypto-news-flash.com/ripple-fights-secs-2-billion-penalty-seeks-10-million/" rel="noopener noreferrer nofollow">arguing</a> that a heftier penalty is needed to punish and deter Ripple’s ongoing violations. Only a substantial penalty will meet the objectives of the civil penalty statutes and hold Ripple accountable.</p>
<p>Despite the ongoing legal situation, Ripple (XRP) is valued at <strong>$0.4934</strong>, with a <span style="color: #ff0000;"><strong>1.61%</strong></span> decrease in the past day and a <span style="color: #008000;"><strong>2.96%</strong></span> increase over the past week. See the XRP price chart below.</p>
<p><span data-sheets-root="1" data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;&quot;}" data-sheets-userformat="{&quot;2&quot;:513,&quot;3&quot;:{&quot;1&quot;:0},&quot;12&quot;:0}"></span></p>
<div class="cryptoboxes" id="mcw-345586" data-realtime="on">
 <div class="mcw-chart mcw-chart-light" data-font="inherit" data-coin="xrp" data-symbol="XRP" data-currency="USD" data-rate="1.000268" data-type="chart" data-view="day" data-theme="light" data-smooth="true" data-areacolor="" data-bgcolor=""></div>
</div>

Ripple-SEC Saga Heats Up: Regulators Reject $10M Settlement, Push for Heftier Penalty

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