SEC shoots down Ripple’s argument for a lower penalty

The SEC argued Ripple’s proposed lower civil penalty wouldn’t be enough, and there’s no comparison to its settlement with Terraform Labs.

The United States Securities and Exchange Commission has criticized Ripple Labs’ latest argument for a lower penalty, arguing that it wouldn’t be enough.

Last week, Ripple cited the SEC’s settlement with Terraform Labs when it again asked New York District Court Judge Analisa Torres on June 13 for a penalty of “no more than $10 million” — far lower than the regulator’s proposed $876.3 million civil penalty.

A day later, the SEC argued in a June 14 letter to Judge Torres that its $4.5 billion settlement with Terraform and co-founder Do Kwon — inclusive of a $420 million civil penalty — was made as the firm is bankrupt, agreed to return money to investors and fired leaders “in charge at the time of the violations.”

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