Prominent lawyer Jeremy Hogan clears misconception surrounding the SEC’s latest brief in the Ripple lawsuit, emphasizing that the regulator did not drop its $2B demand to $102M.
Recall that Ripple leveraged the TerraForm Labs’ (TFL) settlement to support its argument for a $10M penalty. Ripple argued that the difference between TFL’s civil penalty of $420M and the company’s gross sales of $33B is around 1.27%.
In response, the SEC disagreed with the presentation, noting that Ripple should apply the logic to TFL’s civil penalty and disgorgement of $3.58B. Comparing the difference between the agreed civil penalty and disgorgement in the TFL case, the SEC arrived at a ratio of 11.7%.
Applying the 11.7% ratio to the $876.3M the SEC seeks as disgorgement in the Ripple case, the SEC noted that the civil penalty should be $102.6M instead of the $10M fine proposed by the defendant.
Pro-XRP Lawyer Addresses Misconception
Following the SEC’s presentation, some XRP enthusiasts speculated that the SEC had dropped its initial request of $2B to $102.6M. Consequently, Attorney Hogan addressed the growing misconception, emphasizing that the SEC is not demanding $102M in fines.
The pro-XRP lawyer said the SEC only used a comparative legal approach based on Ripple’s logic on the TFL settlement to determine that the potential penalty should be $102M.
ME: The SEC isn't requesting a penalty of $102 million, it's arguing that even applying Ripple's logic to the Terra settlement, the penalty should be $102 million.
Also Me: What are the CHANCES? pic.twitter.com/MhQDPLV5s9
— Jeremy Hogan (@attorneyjeremy1) June 15, 2024
Furthermore, Attorney Hogan shared his previous prediction regarding the lawsuit, where he projected that the court could impose a fine of $100M against Ripple and a permanent injunction on institutional sales of XRP.
Top Lawyer Shares Similar Sentiment
Adding to Attorney Hogan’s analysis, Australian-based lawyer Bill Morgan shared a similar sentiment in a recent X post. According to Morgan, the SEC’s brief was misinterpreted to suggest that the SEC dropped its $2B remedies demand to $102M.
The top lawyer accused ‘specific XRP influencers’ of spreading this false theory about the SEC’s demands.
Meanwhile, the XRP community is awaiting the court’s imminent final decision, which could potentially end the multi-year lawsuit at the District Court level. It remains to be seen whether any of the parties will appeal the decision in the Second Circuit.
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