Terra

The long running <a href="https://news.todayq.com/sec-vs-ripple-a-crucial-battle-crypto-industry/" rel="noopener noreferrer nofollow">legal battle</a> between Ripple Labs and the US Securities and Exchange Commission (SEC) witnessed another round of court filings. The defendants filed a notice of Supplemental Authority regarding to its opposition to the SEC’s pending motion for remedies and entry of final judgment. Ripple fires back 
As per the court filings, Ripple mentioned that on June 12, 2024, the commission sought approval for the final consent judgment in SEC v.Terraform Labs. This request follows a jury verdict finding Defendants Terraform Labs and Do Hyeong Kwon. Here both are liable for intentionally and recklessly orchestrating one of the largest securities frauds in the US history.
It added that Terra engaged in two long-running massive fraudulent schemes in which they made up fictitious transaction data to potential investors and secretly supported the price of a token through a high frequency trading. However, the firm made false statements that the token price had instead risen due to Defendants’ proprietary algorithm. These schemes resulted in more than $40 billion of investor funds being wiped out.
Ripple mentioned that the proposed consent order requires Terraform to pay over $3.58 billion in disgorgement. It added that in seeking this amount the SEC had cited direct witness testimony of investor losses. Is this an SEC fault? 
It is important to note that the proposed order also requires Terraform to pay a $420 million civil penalty. Meanwhile, the civil penalty represents approx 1.27% of Defendants’ $33 billion gross sales. The civil penalty sought by the SEC in the Terraform case shows the unreasonableness of the civil penalty.
As Ripple’s opposition explained, the commission has agreed to civil penalties ranging from 0.6% to 1.8% of the defendant’s gross revenues.
Stuart Alderoty, Chief Legal Officer at Ripple in a post had stated that the commission is again touting a big penalty. He suggested that the SEC actually will end up a creditor in bankruptcy court. He added that the financial watchdog has become a show regulator chasing headlines rather than good policy.
On the market side, XRP price dropped by another 9% in the last 7 days. It is trading at an average price of $0.477, at the press time. XRP 24 hour trading volume is down by 18% to stand at $1.01 billion.

XRP on edge as Ripple clashes with SEC over massive penalties

Todayq News

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