U.Today - Ripple is to manage to significantly reduce the potential $770 million fine imposed by the SEC, according to legal expert Jeremy Hogan. This would make yet another win for the embattled company.
Hogan's most recent take
In his thread on the X social media platform, Hogan the key arguments that Ripple could use to lower the damages sought by the SEC.These arguments are based on recent case law and the specific circumstances of Ripple's XRP sales.
Hogan points out that the "disgorgement" sought by , which is the recovery of profits made from the alleged wrongdoing, should be based on Ripple's net profits, not the gross amount. This distinction is crucial as it allows Ripple to deduct business expenses, potentially slashing the sum significantly.
Moreover, Hogan emphasizes that only sales with a U.S. nexus fall under the SEC's jurisdiction, introducing a "nexus" question that could further limit the scope of any financial penalty.
A significant court decision
Previously, Ripple a court decision that could tilt the legal battle in its favor. Ripple's chief lawyer, Stuart Alderoty, hailed the 2nd Circuit's ruling in SEC v. Govil, noting that the SEC must prove investors suffered actual financial harm before demanding significant disgorgement.This view, which is supported by Hogan, suggests that Ripple's liability may depend on whether XRP investors have incurred losses.
Prior to that, the regulator its charges against Brad Garlinghouse and Chris Larsen, the top Ripple executives. Alderoty hailed the SEC's decision to drop all charges against Ripple executives as a "surrender."