{"id":425994,"date":"2024-06-14T10:36:50","date_gmt":"2024-06-14T09:36:50","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=425994"},"modified":"2024-06-14T10:36:50","modified_gmt":"2024-06-14T09:36:50","slug":"ripple-calls-sec-penalty-disproportionate-compared-to-terraform-labs","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/ripple-calls-sec-penalty-disproportionate-compared-to-terraform-labs\/","title":{"rendered":"Ripple calls SEC penalty disproportionate compared to Terraform Labs"},"content":{"rendered":"<p>Crypto firm <a href=\"https:\/\/cryptoslate.com\/companies\/ripple\/\">Ripple<\/a> has referenced the recent settlement between the US Securities and Exchange Commission (SEC) and Terraform Labs to challenge the financial regulator's proposed <a href=\"https:\/\/cryptoslate.com\/sec-reveals-why-ripple-should-be-fined-for-2-billion\/\">$2 billion penalty.<\/a><\/p>\n<p>On June 13, Ripple filed a <a href=\"https:\/\/www.dropbox.com\/scl\/fi\/8k5kljkwtha19fzhcht4b\/Terra-Form-Notice-of-Supplemental-Authority.pdf?rlkey=w17vpav1uyyhq687hng1k7awe&e=2&dl=0\">notice<\/a> of supplemental authority with Judge Analisa Torres of the Southern District of New York, arguing that the SEC's demands against it were unreasonable and unfair.<\/p>\n<p>According to the firm, bankrupt <a href=\"https:\/\/cryptoslate.com\/companies\/terraform-labs\/\">Terraform Labs<\/a> and its CEO <a href=\"https:\/\/cryptoslate.com\/people\/do-kwon\/\">Do Kwon<\/a> were found liable for executing one of the largest securities frauds in US history and were only required to pay a 1.27% civil penalty for their $33 billion gross sales. On June 12, Terraform <a href=\"https:\/\/cryptoslate.com\/us-court-issues-final-judgement-against-terraform-labs-do-kwon-imposes-4-5-billion-in-fines\/\">agreed to pay $4.47 billion in fines<\/a>\u2014$3.5 billion in disgorgement and $420 million for civil penalties\u2014to settle its case against the SEC.<\/p>\n<p>Ripple stated that Terraform's penalty was in congruence with the regulator's practice of agreeing to &#8220;civil penalties ranging from 0.6% to 1.8% of the defendant's gross revenues.&#8221;<\/p>\n<p>However, Ripple pointed out that the regulator's demands were far greater in its case despite the absence of any &#8220;allegations of fraud,&#8221; adding that &#8220;institutional buyers did not suffer substantial losses.&#8221;<\/p>\n<p>As a result, Ripple requested the court to reject the SEC's proposed penalty and impose a civil penalty not exceeding $10 million. It <a href=\"https:\/\/www.dropbox.com\/scl\/fi\/8k5kljkwtha19fzhcht4b\/Terra-Form-Notice-of-Supplemental-Authority.pdf?rlkey=w17vpav1uyyhq687hng1k7awe&e=2&dl=0\">stated<\/a>:<\/p>\n<blockquote><p>&#8220;Terraform thus confirms that the Court should reject the SEC\u2019s disproportionate and unprecedented request and that an appropriate civil penalty would be no more than $10 million.&#8221;<\/p><\/blockquote>\n<p>Over the past years, the SEC and Ripple have been embroiled in a legal battle. The regulator accuses the crypto firm of raising more than $1 billion by selling unregistered security tokens.<\/p>\n<p>Last year, Judge Torres delivered a mixed ruling. She declared that Ripple's programmatic sales of XRP did not violate securities laws. However, she also ruled that the direct sales of <a href=\"https:\/\/cryptoslate.com\/coins\/xrp\/\">XRP<\/a> to institutional investors were considered securities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crypto firm Ripple has referenced the recent settlement between the US Securities and Exchange Commission (SEC) and Terraform Labs to challenge the financial regulator&#8217;s proposed $2 billion penalty. On June 13, Ripple filed a notice of supplemental authority with Judge Analisa Torres of the Southern District of New York, arguing that the SEC&#8217;s demands against [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":425995,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[60793],"tags":[74979,74981],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ripple calls SEC penalty disproportionate compared to Terraform Labs<\/title>\n<meta name=\"description\" content=\"Ripple argues that the SEC&#039;s $2 billion penalty was disproportionate compared to the recent Terraform Labs settlement.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/ripple-calls-sec-penalty-disproportionate-compared-to-terraform-labs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ripple calls SEC penalty disproportionate compared to Terraform Labs\" \/>\n<meta property=\"og:description\" content=\"Ripple argues that the SEC&#039;s $2 billion penalty was disproportionate compared to the recent Terraform Labs settlement.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/ripple-calls-sec-penalty-disproportionate-compared-to-terraform-labs\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2024-06-14T09:36:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/06\/ripple-sec.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/ripple-calls-sec-penalty-disproportionate-compared-to-terraform-labs\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/ripple-calls-sec-penalty-disproportionate-compared-to-terraform-labs\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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