On Thursday, Ripple filed a Notice of Supplemental Authority regarding the TerraForm Labs Consent Judgment.
Ripple referred to the SEC vs. Terraform Labs court ruling whereby the SEC pushed Terraform Labs to pay $3,586,875,882 in disgorgement and a civil penalty of $420,000,000.
The filing highlighted that the civil penalty accounted for about 1.27% of the defendants’ $33 billion gross sales, contrasting with the ‘unreasonableness of the civil penalty’ sought in the Ripple case. Ripple stated that, in similar cases, the SEC agreed to civil penalties between 0.6% and 1.8% of the defendant’s gross revenues.
The court filing added that the SEC seeks a civil penalty far greater than the 0.6% to 1.8% range despite no allegations of fraud. Unlike the Terraform Lab case, XRP institutional investors did not suffer substantial losses.
Ripple swiftly filed the Notice of Supplemental Authority, supporting its argument for a $10 million penalty for breaching US securities laws.
On Thursday, the SEC announced that Terraform Labs and Do Kwon agreed to pay more than $4.5 billion after the court ruling.
