Crypto Lawyer Points Out That SEC Didn’t Reduce $2 Billion Demand to $10.2 Billion in Ripple Case

Well-known lawyer Jeremy Hogan has cleared up a misunderstanding regarding the latest U.S. Securities and Exchange Commission (SEC) filing in the Ripple lawsuit, stressing that the regulator did not reduce its demand of $2 billion to $102 million. Recall that Ripple used the settlement with TerraForm Labs (TFL) to support its claim, demanding a $10 million fine. Ripple argued that the difference between TFL’s $4.2 billion civil penalty and the company’s total sales of $33 billion was approximately $1.27%. The SEC disagreed with this statement, stating that Ripple should apply this logic to TFL’s civil penalty and $3.58 billion in disgorgement. Comparing the difference between the civil penalty and disgorgement agreed in the TFL case, the SEC arrived at a ratio of 11.7%. Applying the 11.7% ratio to the $876.3 million in disgorgement the SEC seeks in the Ripple case, the SEC states that the civil penalty should be $102.6 million, rather than the $10 million penalty proposed by the defendants. XRP lawyer clarifies misunderstandings. Following the SEC’s presentation, some XRP enthusiasts speculated that the SEC had lowered its initial demand of $2 billion to $102.6 million. Attorney Hogan therefore highlighted this growing misunderstanding by emphasizing that the SEC is not seeking a $102 million fine. The pro-XRP lawyer said the SEC only used a comparative legal approach based on the logic of Ripple’s settlement with TFL to determine that the potential penalty should be $102 million. Additionally, Attorney Hogan shared his previous predictions for the lawsuit, predicting that the court could impose a $100 million fine on Ripple and permanently ban institutions from selling XRP. Top lawyers share similar views. Australian lawyer Bill Morgan echoed Hogan's analysis in a recent article. According to Morgan, the SEC filing was misinterpreted to suggest the SEC would reduce its $2 billion remediation demand to $102 million. The top lawyer accused ‘certain XRP opinion leaders’ of spreading false theories about the SEC’s request. Meanwhile, the XRP community is awaiting the court’s upcoming final decision, which could put an end to years of litigation in district court. It is unclear whether either party will appeal the Second Circuit's decision. Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not necessarily reflect the views of The Crypto Basic. Readers are advised to perform adequate research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.