The blockchain firm’s case with the SEC has been ongoing since December 2020, when the regulator alleged Ripple used XRP as an unregistered security to raise funds.
Lawyers for blockchain firm Ripple have asked a court to consider an “appropriate” civil penalty in its case against the United States Securities and Exchange Commission (SEC) following a settlement between the regulator and Terraform Labs.
In a June 13 filing in the U.S. District Court for the Southern District of New York, Ripple’s legal team submitted a notice of supplemental authority alleging the “unreasonableness” of the SEC’s civil penalty, citing a settlement in the Terraform case. Before Ripple’s filing, a federal judge approved a $4.5-billion deal between the SEC and Terraform Labs and its co-founder Do Kwon.
The SEC has requested that Ripple pay roughly $2 billion in disgorgement, prejudgement interest and civil penalties, while the blockchain firm has argued for no more than a $10-million penalty. Ripple lawyers made similar arguments in penalties imposed in the SEC’s respective cases against Block.one, Genesis Global Capital and Telegram, but the filing redacted information regarding the firm’s gross revenue.
