Amidst the intensified discussion following the SEC’s response to Ripple’s letter about the Terraform Labs settlement, XRP lawyer Bill Morgan has recently downplayed worries about Ripple’s ability to pay potential fines to the SEC. He dismissed the claims of Ripples’ impending bankruptcy giving examples of recent acquisitions as the company’s financial strength.
XRP Lawyer Addresses Ripple’s Financial Concerns
A potential large fine from the SEC has raised concern about Ripple’s financial stability. A social media user recently suggested in the X post (Formerly Twitter) that Ripple might face bankruptcy because of these penalties.
XRP lawyer Bill Morgan addressed these concerns on the X platform, asserting Ripple’s solid financial health. He highlighted the company’s recent acquisitions as proof of its stability.
Morgan questioned how a company that has bought two major custodial businesses in the past year for hundreds of millions of dollars would be unable to cover a $100 million-plus fine.
Ripple’s financial activities, such as acquiring Metaco in May last year and Standard Custody recently, demonstrate its strong economic health. Ripple purchased Metaco for $250 million last year. These strategic acquisitions, as highlighted by Morgan, enhance Ripple’s capabilities in digital asset custody, strengthening its market position despite regulatory challenges.
Meanwhile, the SEC’s response to Ripple’s letter about the Terraform Labs Consent Judgment has been a key point in the ongoing lawsuit. The regulator claimed that Ripple’s current On-Demand Liquidity (ODL) sales practices are very similar to past violations.
About Terraform Case
Terraform case is one of the largest security frauds in US history, involving two running fraudulent schemes that resulted in a $40 billion loss for the investors. The case was settled by the consent judgment imposing a penalty equal to 1.27% of Terra’s Gross Sales.
Ripple claims that the SEC accepted penalties in other cryptocurrency cases ranging from 0.6% to 1.8% of the defendant’s gross sales. However, the SEC has demanded a penalty of $876 million from Ripple, which the company argues is 20 times higher than any other penalty in similar cases.
Ripple’s Market Resilience
Ripple’s market strategy and financial actions indicate a company ready to face its legal challenges. Despite the SEC’s claims that Ripple’s On-Demand Liquidity (ODL) sales resemble past infractions, XRP lawyer Bill Morgan noted that current records do not conclusively support these allegations.
Ripple’s significant acquisitions highlight its resilience and readiness to address potential penalties. The purchases of Metaco and Standard Custody show Ripple’s commitment to expanding its presence in the digital asset custody sector.
However, amid the looming concerns over the ongoing Ripple Vs SEC lawsuit, XRP price surged to 0.4893 over the past 24 hours, indicating the risk appetite of the investors.
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