SEC Rejects Ripple Labs' Plea To Lower Fines, Insists On Nearly $2 Billion Penalty

According to PANews, the U.S. Securities and Exchange Commission (SEC) has dismissed the latest arguments from Ripple Labs to reduce its fines, insisting on a total penalty of nearly $2 billion. This includes $198.2 million in pre-judgment interest, $876.3 million in civil penalties, and another $876.3 million in refund amounts. Last month, Ripple attempted to seal part of its financial information, but the SEC opposed this, believing the company should disclose the revenue obtained through XRP. Last week, Ripple proposed to Judge Analisa Torres of the New York District Court a fine 'not exceeding $10 million', far less than the $876.3 million civil penalty proposed by the SEC. Ripple cited the SEC's settlement agreement with Terraform Labs as a basis. However, the SEC emphasized in its response that its settlement with Terraform was based on the company's bankruptcy, agreement to refund, and dismissal of relevant responsible persons, measures that Ripple has not taken. The SEC stated that Ripple's fine should be calculated based on the gross profit of its violations, not the total sales. If the penalty ratio of Terraform (close to 12%) is applied to Ripple, its fine should be $102.6 million. The SEC believes that such a low fine cannot meet the purpose of civil penalty regulations. Since the SEC accused Ripple of selling unregistered securities in 2020, the two parties have been arguing in court. Judge Torres has confirmed Ripple's illegal behavior, but only when selling to institutional investors. Currently, the legal battle between the two parties continues.