Proposes payment of USD $102.6 million – DiarioBitcoin

The SEC responded to the appeal presented by Ripple and assures that this case is not comparable to the agreement reached with Terraform Labs. They agreed to reduce the amount by more than 90%, and maintain that this figure is appropriate to deter future bad practices.

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• SEC significantly reduces the fine proposed for Ripple
• Now it would be USD $102.6 million
• It originally asked for about USD $2,000 million, which generated criticism and complaints.
• The SEC insists that despite being a smaller amount, it will be instructive for Ripple

After several weeks of dispute and pointing out as an example the case of Terraform Labyes, it seems that Ripple managed to Securities and Exchange Commission (SEC) reconsider the amount of the fine that will apply to the service company Blockchain.

According to an update presented in court, the SEC now proposed to set the fine against Ripple at about USD $102.6 million, this instead of the USD $2,000 million it originally requested.

Rethinking the amount of the fine against Ripple

The precision was made by the lawyer of Ripple, James Filan, who shared through his X account a document presented by the SEC before the court yesterday, where he reconsidered the originally proposed fine despite reiterating that the allegations presented by Ripple They are wrong and do not apply to this case.

This change came about one day after Ripple asked the court to take as an example the agreement reached by the SEC with Terraform Labs. There the fine was about USD $4.5 billion, and the lawyers explain that the SEC has set “civil penalties ranging from 0.6% to 1.8% of the defendants’ gross income“, which applies perfectly to this case:

“In this case [contra Ripple]”In contrast, the SEC seeks a civil penalty that far exceeds that range, even though there are no allegations of fraud in this case and Institutional Buyers did not suffer substantial losses,” indicated the company’s lawyers.

Faced with this, although the SEC reduced the originally proposed amount by more than 90%, alleged that Ripple is taking the case to a different setting, so compare with Terraform Labs does not apply in any way:

“Ripple fails to realize that the company sued there is bankrupt, ‘going out of business forever,’ burning the keys to all of its cryptoasset securities, agreeing to return a significant amount to investors in those securities, and eliminating two of the board members in charge at the time of the violations,” stated the SEC, and I add:

The SEC took all of these factors to reach the settlement and repeatedly cited them as relevant facts for the court to approve the settlement under applicable law. Ripple is not accepting any of this relief; in fact, Ripple accepts nothing.

And regarding the new amount, the agency indicated that some USD $102.6 million is much less than the previous fine, but said amount is instructive for “deter future misconduct” by Ripple.

Let us keep in mind that given the USD $2,000 million requested as a fine for Ripple, The latter presented about USD $10 million as a counterproposal. The company assured that the SEC it simply applied disproportionate measures, revealing “administrative overreach” that the agency has for this case.

Article by Angel Di Matteo / DailyBitcoin

Picture of Unsplash

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