XRP News Today: SEC Filing Fuels Speculation of a Settlement Offer

Ripple filed the Notice of Supplemental Authority on Thursday (June 13), referencing the Terraform Labs settlement to demonstrate the excessive penalty demand from the SEC.

The SEC filed with the court a response, with a scathing attack, stating that Ripple continues to conduct similar activities to those that led to the 2020 SEC complaint. Moreover, the SEC presented arguments to justify its settlement with Terraform Labs.

Notably, the SEC also offered a calculation, assuming ratios from the Terraform Labs settlement, stating,

“Ripple avoids comparing the Terraform settlement’s penalty to the gross profit of the violative conduct. That ratio ($420 million/$3.587 billion) is significantly higher: 11.7%. Applying it to the $876.3 million in gross profits the SEC here asks the Court to disgorge the results in a much larger figure, a $102.6 million penalty, than the $10 million ceiling Ripple insists on.”

The SEC concluded that the Ripple proposal for a $10 million ceiling was too low, stating that the proposal,

“would not satisfy the purposes of the civil penalties statutes.”