- According to Ripple Labs, the SEC under Gensler is notorious for issuing inflated penalties.
- The assertions made by the SEC in response to filing were the most noteworthy to the CLO.
Stuart Alderoty, chief legal officer of Ripple, has offered fresh commentary on the United States Securities and Exchange Commission’s (SEC) most recent filing after a contentious week in the case.
An announcement of a settlement between the regulator and insolvent Terraform Labs kicked off the drama this week. The parties settled for $4.47 billion, a figure that the company may not have the financial wherewithal to pay, according to recent analyses.
Ongoing Fight
Moreover, Ripple Labs jumped on the bandwagon and demanded that the court reject the fine by filing a notice of Supplemental Authority. According to Ripple Labs, the SEC under Gary Gensler is notorious for issuing inflated penalties. Moreover, the blockchain payment provider restated its earlier claims that the $2 billion sought by the SEC is excessive in relation to the amount of transaction at issue in the litigation.
Furthermore, in response to this additional notice, the SEC has submitted a multi-argument objection. Also, at the outset, it made clear that the settlement amount for Terraform Labs’ bankruptcy was $4.47 billion.
The Ripple CLO took issue with the SEC’s claim that Ripple is “agreeing to nothing” and used the opportunity to refute this claim in this document. Last year, Judge Analisa Torres determined that XRP does not constitute a security, as Alderoty recalled. He went on to say that there were no victims in the XRP sales by Ripple Labs.
Moreover, the assertions made by the SEC in response to Ripple Labs’ filing were the most noteworthy aspect to Stuart Alderoty. According to the regulator, the company has rejected the idea of a penalty. The SEC said that Ripple is entitled to a minimum of $102.6 million in addition to the $10 million it is claiming. The Ripple CLO was relieved and said that it “seems to have abandoned its absurd demand for $2B” based on this.
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