300% of Unregistered Sales from Ripple
SEC Seeks Enormous 300% of Unregistered Sales from Ripple
SEC Seeks Enormous 300% of Unregistered Sales from Ripple
Still awaiting the conclusion of the legal standoff between the United States Securities and Exchange Commission (SEC) and Ripple, the cryptocurrency community is highlighting the regulator's disproportionate approach.
Law professor J. W. Verret noted that "the SEC typically collects 11% of unregistered sales claims, but in Ripple's case, they want 300%," labeling it as "an abuse of power." These remarks were made in a post on his BlockProf profile on the X platform, shared on April 3.
Disproportionate SEC Demand in the Ripple Case
Verret presented a graphic showing the disparity between the amounts the regulator was demanding from Ripple compared to what it had collected in other cases, including against Telegram, Kik Interactive, LBRY, and Kraken cryptocurrency exchange.
As the graphic shows, Telegram had to pay $1.24 billion as restitution for the $1.7 billion that the court found to be unregistered sales. LBRY had to pay only 1%, Kik 5%, while Kraken paid 20.41%.
In Ripple's case, the SEC is demanding a whopping $2 billion in fines and penalties, which is approximately 275% more than the $729 million in institutional XRP sales that the court declared as unregistered securities.
Another legal expert and well-known commentator on the Ripple case, Bill Morgan, echoed Verret's sentiments, calling the regulator's demands "very abusive" and adding that "the SEC must loathe Ripple for fighting so hard."
*This is not a financial advice
