Ripple cites Terraform and settlement case, requesting a reduction of the $2 billion fine proposed by the SEC

ChainCatcher news, according to The Block, Ripple Labs' lawyers are trying to leverage the recent fines imposed by the SEC on Terraform Labs in an effort to secure a lower penalty in their case with the SEC.

Ripple has been engaged in a lengthy legal battle with the SEC for the past few years, and on Thursday, in a "Supplemental Authority Notice," stated that the proposed financial penalty by the regulator is unreasonable. The company compared the SEC's proposed $2 billion fine for its sale of XRP to institutional investors with the fine imposed on Terraform Labs.

Ripple believes that its fine should be closer to $10 million. On Wednesday, Terraform agreed to pay a $4.47 billion fine, and later on Thursday, a judge approved the settlement agreement. Ripple's lawyers stated, "The civil penalty sought by the SEC in the Terraform case indicates the unreasonableness of the civil penalty sought in this case."

"As explained in Ripple's opposition, the range of civil penalties agreed upon by the SEC in similar (or even more severe) cases has been between 0.6% to 1.8% of the defendant's total revenue. Terraform fits this pattern."