XRP up 20% after Judge fines Ripple $125M, ending four-year-long lawsuit with SEC
- Ripple to pay $125 million fine in civil penalties, rules Judge.
- The Judge also banned Ripple from breaking securities laws in the future.
- XRP skyrocketed by 20% after the ruling despite wider market dump.
In a court filing on Wednesday, Judge Analisa Torres ruled that Ripple Labs would pay a $125 million civil penalties fine and banned the company from future violations of securities laws.
Judge Torres had earlier ruled in July 2023 that only XRP's sale to institutions violated securities laws but was legal when sold to the public in crypto exchanges.
"The SEC's motion for remedies and the entry of final judgment is GRANTED IN PART and DENIED IN PART. The Court shall enter a final judgment enjoining Ripple from further violations of the securities laws and imposing a civil penalty of $125,035,150," the filing stated.
The Securities & Exchange Commission (SEC) initially requested a $2 billion fine on the firm, but Ripple argued for a lower amount, around $10 million.
The ruling marks a potential end to the SEC's case against Ripple Labs, which dates back to November 2020. The regulator accused the company of conducting unregistered securities sales after it raised $1.3 billion through the sale of XRP tokens.
Crypto community members are debating whether or not the SEC would appeal the ruling, considering the fine on Ripple is far from its request of $1 billion in disgorgement and prejudgment interest, and $900 million in civil penalty.
Ripple banned from breaking securities laws
Judge Torres also banned Ripple from violating securities laws in the future, as she stated that the company has the potential to "cross the line."
"Rather, the Court finds that Ripple's willingness to push the boundaries of the Order evinces a likelihood that it will eventually (if it has not already) cross the line," said Torres. "On balance, the Court finds that there is a reasonable probability of future violations, meriting the issuance of an injunction," she added.
Ripple's CEO Brad Garlinghouse took to the X platform to celebrate the win, calling it a victory for Ripple, the crypto industry and the rule of law.
The SEC asked for $2B, and the Court reduced their demand by ~94% recognizing that they had overplayed their hand. We respect the Court’s decision and have clarity to continue growing our company.
— Brad Garlinghouse (@bgarlinghouse) August 7, 2024
This is a victory for Ripple, the industry and the rule of law. The SEC’s…
Following the filing, XRP's price increased by 20% despite major declines across several top cryptocurrencies.
(This story was updated throughout to include key information from the court filing.)
Author
FXStreet Team
FXStreet
Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.
