Ripple Labs, a blockchain payment platform, has joined the debate over the $4.47 billion settlement between Terraform Labs and the United States Securities and Exchange Commission (SEC). The company believes that the SEC's request is unreasonable and that the settlement amount should be significantly lower.

The SEC had requested that Terraform and its founder, Do Kwon, pay $3.58 billion in disgorgement and $420 million in a civil penalty. This request was made in response to allegations that Kwon and his former company had deceived investors about their cryptocurrency products, causing significant financial losses. However, Ripple argues that the SEC's settlement request is excessive and that the company should not be held liable for such a large amount.

Ripple points out that the SEC's settlement requests typically range from 0.6% to 1.8% of the gross sales of the company being penalized. In this case, the SEC is requesting a settlement that is more than 12 times the average amount. Ripple believes that Terraform Labs should fall within the lower end of this range, and that the company should not be held liable for such a large amount.

The outcome of this process could have significant implications for other regulation-related lawsuits with the SEC, including the ongoing lawsuit against Ripple.