Ripple cited the Terraform settlement as a basis for reducing the SEC's proposed $2 billion fine

Lawyers for Ripple Labs are trying to capitalize on the recent fine against Terraform Labs in an effort to pay a lower penalty in its case with the Securities Exchange Commission (SEC).
Ripple Inc., which has been engaged in a lengthy legal battle with the SEC for the past several years, said in a "notice of supplemental authority" on Thursday that the regulator's proposed financial fine was not justified. The company compared the SEC's proposed fine of $2 billion for its sale of XRP to institutional investors to the fine imposed on Terraform Labs. Ripple argued that its fine should be closer to $10 million. On Wednesday, Terraform agreed to pay a $4.47 billion fine, and later Thursday, a judge approved the settlement.
"The civil penalty sought by the SEC in the Terraform case demonstrates the unreasonableness of the civil penalty sought in this case," said Ripple's lawyers. "As Ripple's objection explains, the civil penalty agreed by the SEC in similar (and even more serious) cases ranges from 0.6 per cent to 1.8 per cent of the defendant's gross income. Terraform fits this pattern."