Ripple cites Terraform Labs case to try to get the SEC to reduce the fine against it – DiarioBitcoin

The company alleges that the agreement reached by the SEC with Terraform Labs adjusts to the margins that are managed depending on the gross income of the accused, so the fine they want to impose on Ripple completely exceeds these frameworks.

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• Ripple appeals again the fine that the SEC against him
• On this occasion, they cite the agreement reached between the SEC and Terraform Labs
• They allege that the fine ordered against Terraform Labs fits the gross income margins of the latter
• But USD $2,000 exceeds the numbers of Ripple, so they consider that USD $10 million is enough
• Court must decide amount of fine in future opportunities

The dispute continues between Ripple and the US Securities and Exchange Commission (SEC) for the fine that would apply to the products and services company Blockchain, and in a new turn of events, the latter asked the court to analyze in depth the agreement that the agency reached with Terraform Labs to determine a “fair sanction” in this litigation.

Evaluate the fine for Ripple

In a presentation recorded yesterday before the court by the team of Ripple, The lawyers again rejected the sanction proposed by the SEC for their case, calling it “unreasonable” and using the case of Terraform Labsan entity that agreed to pay some USD $4.5 billion as a fine for the irregularities that led to the collapse of the Terra ecosystem.

In this regard, the lawyers of Ripple They explained that “the SEC has agreed to civil penalties ranging from 0.6% to 1.8% of the defendants’ gross income” In other cases, which applies exactly to Terraform Labs after the losses derived from the users of their tokens, and add:

In this case, by contrast, the SEC is seeking a civil penalty that far exceeds that range, even though there are no allegations of fraud in this case and the Institutional Buyers did not suffer substantial losses. The Terraform Labs case thus confirms that the Court should reject the SEC’s unprecedented and disproportionate request and that an appropriate civil penalty would be no more than $10 million.

Let us keep in mind that the SEC is requesting a sanction of USD $2,000 million to Ripple Labs, This is due to pointing out that the pre-sale of the token XRP among institutional investors violated provisions contemplated in the securities laws currently in force. The company criticizes that the measure is simply disproportionate, since it highlights “administrative overreach” that the agency has for this case.

Instead of the USD $2 billion requested by the SEC, Ripple proposes that the fine be set at no more than USD $10 million, a figure they consider more than appropriate. However, the regulatory agency rejects this figure, indicating that such a sanction “wouldn’t be instructive,” since it would not deter other token issuers from going down this same path and breaking current laws.

The agreement between Terraform Labs and the SEC

Regarding the agreement between Terraform Labs and the SEC, the company responsible for the project Terra committed in a conciliation plan to pay an estimated USD $4.47 billion after what happened.

In the conciliation plan finalized by both entities, it is established that Do Kwon, former CEO of the organization, must pay a total of USD $204.3 million in fines that include refunds, civil penalties and the cancellation of previous interests. to failure.

On the side of Terraform Labs, The amount amounts to approximately USD $4.47 billion, which is divided into approximately USD $3.6 billion in refund fines, USD $420 million in civil fines and another USD $467 million in prior interest.

After the consolidation of this agreement, Terraform Labs reported that it was preparing to permanently close its operations, since the legal dispute and commitments prevent the continuity of the organization.

Terraform Labs filed for bankruptcy in a Delaware court in January, and Kwon, meanwhile, is in Montenegro awaiting extradition to the U.S. or South Korea, his native country. The final decision is in the hands of the Supreme Court from the country.

Article by Angel Di Matteo / DailyBitcoin

Picture of Unsplash

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