Ripple cites Terraform settlement as basis for lowering SEC's proposed $2 billion fine

Ripple Labs' lawyers are trying to use the recent fine against Terraform Labs to pay a lower fine in its case with the US Securities and Exchange Commission (SEC). Ripple has been in a long legal battle with the regulatory agency in recent years and on Thursday, in a "supplemental authoritative notice," the company stated that the financial penalty proposed by the regulator is unreasonable. The company compared the SEC's proposed $2 billion fine for selling XRP to institutional investors to Terraform Labs' fine. Ripple believes its fine should be closer to $10 million. On Wednesday, Terraform agreed to pay a $447 million fine, and later on Thursday, a judge approved the settlement agreement. Ripple's lawyers said, "The civil penalty that the SEC seeks in the Terraform case demonstrates the unreasonableness of the civil penalty sought in this case." "As explained in Ripple's opposition, in similar (or even more egregious) cases, the civil penalties that the SEC has agreed to have ranged from 0.6% to 1.8% of the defendant's total revenue. Terraform falls within this pattern."