Stuart Alderoty, Ripple’s top lawyer, has reacted to the U.S. Securities and Exchange Commission’s recent filing, claiming that the agency is “raging.”
Alderoty argues that there are no victims to compensate, adding that his company is currently “thriving.”
Moreover, Ripple’s top legal mind claims that the SEC has now abandoned its demand for $2 billion worth of fines and penalties.
cardLast week, the company cited the Terraform case in a notice of supplemental authority to its opposition to the agency’s motion for remedies and entry of final judgment.
Terraform Labs has agreed to shell out $4.47 billion in order to settle the SEC lawsuit. The agency was originally pushing for a $5.3 billion fine against the company co-founded by infamous cryptocurrency entrepreneur Do Kwon.
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Unlike Terraform Labs, Ripple has faced no allegations of fraud, which is why the company argues that the SEC’s demands are unreasonable and unprecedented. The San Francisco-based company previously claimed that its civil penalty should be limited to just $10 million, a tiny portion of the sum that was originally requested by the SEC.
However, the SEC insists that such a low penalty “would not satisfy the purposes of the civil penalty statutes.”
The agency claims that the Terraform Labs comparison is not valid given that the corporate defendant there is in bankruptcy. Moreover, Terraform has agreed to burn the keys to all of its crypto asset securities, and two of its board members who were in charge at the time of violations will be removed. “The SEC took all these factors in agreeing to a settlement, and repeatedly cited them as the facts relevant for the court to approve the settlement under applicable law,” the agency said in its most recent filing.
