Ripple challenges SEC’s $2B demand following Terraform Labs’ $4.47 billion settlement announcement.
The blockchain payments firm’s CLO, Stuart Alderoty, has provided a fresh perspective on the most recent filing from the regulator following a dramatic week in the Ripple Labs versus US SEC lawsuit.
The drama commenced this week with the settlement pronouncement between the regulator and bankrupt Terraform Labs.
They reached an agreement to resolve for $4.47 billion, a sum that current analysis indicates the company may be unable to afford.
In response to the news, Ripple Labs submitted a notice of Supplemental Authority to the court, requesting that the fine be rejected.
Ripple Labs contended that the Securities and Exchange Commission (SEC), which is currently under the leadership of Gary Gensler, is notorious for imposing excessive penalties that are not based on reality.
In addition, the blockchain payments company emphasized that the $2 billion the SEC is requesting from it is excessively high in comparison to the volume of transaction at issue in the lawsuit.
A diverse argument has been submitted by the SEC in opposition to this supplemental notice. First, it was observed that it charged a mere $4.47 billion in settlement as a result of Terraform Labs’ bankruptcy.
The Ripple CLO capitalized on this filing, asserting that the SEC’s assertion that Ripple “agrees to nothing” is inaccurate.
Alderoty recalled that Judge Analisa Torres determined that XRP is not a security last year. Furthermore, he observed that there were no victims in the XRP sales of Ripple Labs.
The SEC contended that it selected a more accommodating settlement with Terraform Labs due to the company’s imminent closure.
Alderoty finds this to be an example of the SEC’s bad conduct, as it is evident that they have concerns regarding Ripple Labs’ successful business.
Stuart Alderoty was particularly intrigued by the assertions that the SEC made in its response to Ripple Labs’ filing. The regulator asserted that the company has not consented to any penalties.
The Securities and Exchange Commission (SEC) recommended that Ripple be required to pay a minimum of $102.6 million in addition to the $10 million dispute.
The Ripple CLO expressed relief, stating that it “seems to have abandoned its absurd demand for $2B” in light of this.
The market is anticipating the final verdict on the remedies, and the fact that a payment in the $100 million range is now in sight is a source of solace for many.
