### Ripple Challenges SEC's Legal Approach in Ongoing Court Battle

In the current legal dispute between Ripple Labs Inc. and the US Securities and Exchange Commission (SEC), Ripple has filed a notable notice of supplemental authority with the Southern District of New York. Dated June 13, 2024, this recent submission aims to influence the court's perspective regarding the SEC's pending motion for remedies and final judgment.

**Update on Ripple vs. SEC Court Proceedings**

Ripple's legal representatives have strategically referenced a parallel SEC case involving Terraform Labs to argue for fairer treatment in their own case. This comparison focuses on the SEC's actions against Terraform Labs Pte. Ltd., where the company and its CEO, Do Hyeong Kwon, were held liable for what the SEC described as one of the largest securities frauds in US history.

In the Terraform case, a final consent judgment was approved on June 12, 2024, mandating Terraform Labs to pay approximately $3.59 billion in disgorgement and a $420 million civil penalty, amounting to about 1.27% of Terraform's $33 billion in gross sales. Ripple's filing, authored by Michael K. Kellogg from Kellogg, Hansen, Todd, Figel & Frederick, P.L.L.C., uses this outcome to challenge the proportionality of the SEC's demands in their case.

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Ripple's legal document contrasts the SEC's treatment of Terraform Labs with its approach towards Ripple, highlighting significant penalties relative to the severity of allegations. The filing emphasizes that Ripple's case involves no allegations of fraud, unlike Terraform's extensive fraudulent activities that resulted in substantial investor losses.

Furthermore, Ripple's legal team argues that the penalties sought by the SEC are disproportionately high, citing precedents where penalties ranged from 0.6% to 1.8% of the defendant's gross revenues in similar cases. The submission underscores this point, stating, "The civil penalty sought by the SEC in Terraform demonstrates the unreasonableness of the civil penalty sought by the SEC in this case."

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**Legal Strategy and Ripple's Defense**

Ripple's defense strategy aims to illustrate what it perceives as inconsistencies in the SEC's application of penalties. By drawing parallels with the Terraform case, Ripple challenges the fairness of the SEC's actions and seeks grounds for negotiating a more equitable penalty.

Ripple's counsel advocates for a cap on civil penalties at $10 million, significantly lower than the SEC's proposed $2 billion fine related to XRP sales to institutional investors.

As of the latest update, XRP was trading at $0.47967.