DOOKV SEC shoots down Ripple’s argument for a lower penalty

The United States Securities and Exchange Commission has criticized Ripple Labs’ latest argument for a lower penalty, arguing that it wouldn’t be enough.

The SEC added it measured Terraform’s penalty against “the gross profit of the violative conduct,” which it pinned at over $3.5 billion — a nearly 12% ratio.

The regulator argued Ripple’s civil penalty would be $102.6 million if the same ratio were applied to the $876.3 million of Ripple’s gross profits it asked to disgorge.

“That low of a penalty would not satisfy the purposes of the civil penalty statutes,” the SEC said.

The SEC’s proposed penalties for Ripple total nearly $2 billion, which includes $198.2 million in prejudgment interest, $876.3 million in civil penalty and another $876.3 million in disgorgement.