Ripple has cited the recent settlement between the US Securities and Exchange Commission (SEC) and Terraform Labs as it contests the SEC’s proposed $2 billion penalty.

In a filing on June 13 with Judge Analisa Torres of the Southern District of New York, Ripple argued that the SEC’s demands were unjust given Terraform Labs' recent settlement.

Terraform, found liable for a significant securities fraud, agreed to pay $4.47 billion in fines, equating to about 1.27% of its $33 billion in gross sales. Ripple highlighted that the SEC typically imposes civil penalties ranging from 0.6% to 1.8% of defendants' gross revenues in similar cases.

Ripple emphasized that its situation differs as it faces demands without allegations of fraud or substantial losses by institutional buyers, proposing a civil penalty not exceeding $10 million instead.

The SEC accuses Ripple of illegally raising over $1 billion through the sale of unregistered security tokens, an ongoing legal dispute resolved partially in Ripple's favor last year by Judge Torres.