Experienced attorney Jeremy Hogan clarifies misunderstandings surrounding the recent SEC brief in the Ripple lawsuit, stressing that the regulator did not reduce its $2 billion demand to $102 million.
In a nutshell, Ripple used the TerraForm Labs’ (TFL) settlement to justify its argument for a $10 million penalty. Ripple claimed that the 1.27% difference between TFL’s $420 million civil penalty and the company’s $33 billion gross sales supported their case.
However, the SEC disagreed with this stance, pointing out that Ripple should apply the same logic to TFL’s civil penalty and disgorgement of $3.58 billion. By comparing the variance between the agreed civil penalty and disgorgement in the TFL case, the SEC arrived at a ratio of 11.7%.
By applying this 11.7% ratio to the $876.3 million disgorgement sought by the SEC in the Ripple case, it was determined that the civil penalty should be $102.6 million instead of the $10 million fine proposed by Ripple.
Pro-XRP Attorney Responds to Misconceptions
After the SEC’s explanation, some XRP enthusiasts speculated that the SEC had lowered its initial $2 billion request to $102.6 million. Attorney Hogan addressed this growing misunderstanding, clarifying that the SEC is not asking for $102 million in fines.
The pro-XRP lawyer explained that the SEC merely used a comparison based on Ripple’s TFL settlement logic to calculate the potential penalty as $102 million.
Moreover, Attorney Hogan reiterated his previous prediction regarding the lawsuit, suggesting that the court might impose a $100 million fine on Ripple and issue a permanent injunction on institutional sales of XRP.
Top Attorney Shares Similar View
Supporting Attorney Hogan’s analysis, Australian lawyer Bill Morgan shared a similar perspective in a recent X post. Morgan stated that the SEC’s brief was misinterpreted to imply that the regulator had reduced its $2 billion remedies demand to $102 million.
The top lawyer accused ‘specific XRP influencers’ of spreading this false narrative about the SEC’s demands.
As the XRP community eagerly awaits the court’s forthcoming final decision, which could potentially conclude the lengthy lawsuit at the District Court level, it remains to be seen whether any of the parties will appeal the ruling in the Second Circuit.
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