Stuart Alderoty, Ripple’s Chief Counsel, has criticized the U.S. Securities and Exchange Commission’s (SEC) latest filing, claiming that the agency is acting out of frustration. Alderoty asserts that there are no victims to compensate and that Ripple is currently thriving.
Furthermore, Ripple’s top legal mind states that the SEC has now abandoned its demand for $2 billion in fines and penalties. Last week, Ripple cited the Terraform case in its supplemental authority notice to counter the agency’s request for remedies and the final judgment.
Terraform Labs agreed to a $4.47 billion settlement to resolve the lawsuit brought by the SEC. Initially, the agency sought a $5.3 billion fine against the company co-founded by crypto entrepreneur Do Kwon.
Ripple argues that there are no fraud allegations in their case, which is why they consider the SEC’s demands unreasonable and unprecedented. The San Francisco-based company previously claimed that the civil penalty should be limited to just $10 million, a fraction of the original amount sought by the SEC.
However, the SEC insists that such a low penalty “would not serve the purposes of civil penalty laws.” The SEC argues that comparing Ripple’s case to Terraform’s is invalid since the defendant company in that case is bankrupt. Additionally, Terraform agreed to burn the keys to all its crypto asset securities, and two board members involved during the violations will be removed.
Read more Ripple Cites TerraForm Labs Settlement to Challenge SEC Penalties
In its latest filing, the SEC stated, “The SEC considered all these factors in agreeing to the settlement and repeatedly cited them as relevant facts for the court to approve the settlement under applicable law.”
Important Notice: The content presented in this article is intended for informational purposes only and should not be interpreted as financial advice. Coinshibainu.com bears no responsibility for any investment decisions made relying on the information contained herein. It is highly recommended to consult with a qualified expert or financial advisor before making any investment decisions.
