Update on the Ripple and SEC Case
The legal struggle between Ripple and the US Securities and Exchange Commission (SEC) has been ongoing for more than three years, with the legal struggle recently entering a decisive phase.
As is known, the lawsuit revolves around accusations that the company and some of its executives sold unregistered securities through XRP.
Earlier this year, the SEC called for a $2 billion fine against Ripple as a result of these alleged violations.
But Ripple rejected these claims, with the company's chief legal officer, Stuart Alderotti, indicating that the appropriate fine should not exceed $10 million.
Recently, Ripple's lawyers strengthened their position, comparing the case to that of Terraform Labs, which agreed to pay a fine of $4.47 billion due to its fraudulent activity.
This amount includes $3.6 billion in damages and $466 million in interest, as well as a $420 million civil penalty.
Ripple's defense team confirmed that the US Securities and Exchange Commission had previously agreed that civil penalties should range from 0.6% to 1.8% of the defendant's total revenue.
They noted that this ratio was applied to Terraform Labs.
Accordingly, Ripple's lawyers considered that an appropriate fine for the company should not exceed $10 million.
The defense added that a jury in Manhattan found that Terraform Labs and its founder, Do Kwon, were responsible for one of the largest securities fraud operations in US history.
By contrast, the case between Ripple and the SEC does not involve any direct allegations of fraud, strengthening the company's position that the fine should be much lower.
The SEC could be viewed by some as the weaker party in this lawsuit, especially after Ripple's partial victories in court during 2023.
The price of XRP has been responding positively to each victory, indicating that a decisive victory could lead to a significant rise in the value of the coin once again.
It remains to be seen how this complex case will develop in the coming months and whether Ripple will be able to achieve a satisfactory settlement or the case will take a new turn in the ongoing legal battle.
