The US Securities and Exchange Commission (SEC) has criticized Ripple Labs' recent request for a lesser sanction, saying it would not be enough.
Ripple had referred to the SEC's previous settlement with Terraform Labs to support its request for a penalty of only $10 million, far less than the SEC's proposed $876.3 million civil penalty.
However, the SEC argued in a letter to Judge Analisa Torres on June 14 that the $4.5 billion settlement with Terraform and its co-founder was appropriate, as the company was in bankruptcy, agreed to reimburse investors and fired the individuals responsible for the breaches.
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They also clarified that Ripple has not agreed to any of these terms in its negotiations.
In addition, the SEC found Ripple's comparison between Terraform's fine and its gross sales to be invalid.