The $125 million fine is far lower than expected, Ripple once again defeated the SEC

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Original author: Felix, PNews

Ripples years-long lawsuit with the U.S. SEC has made progress ag人工智能n. In a document filed with the U.S. District Court for the Southern District of New York on August 7, Judge Analisa Torres ruled that Ripple should bear more than $125 million in compensation liability and pay the fine to the SEC within 30 days; in addition, an injunction document was issued to prohibit Ripple from further violating securities laws. If Ripple plans to sell any securities, it must submit a registration statement.

Regarding the injunction preventing Ripple from violating securities laws in the future, Judge Torres said that sales made by the 公司 after the SEC filed its complaint may not have violated federal law, but that “the likelihood of future violations is so great that it warrants an injunction.”

Judge Torres ruling was a mixed blessing for both parties. While the court determined that certain XRP sales did constitute securities offerings, it also ruled that XRP itself was not a security. This was a major victory for Ripple and has caused an uproar in the cryptocurrency market, with XRPs pr冰 soaring sharply. Coingecko data shows that XRP rose 19.2% in 24 hours.

“Ripple declares victory”

The amount was far less than the $1 billion in disgorgement and prejudgment interest and $900 million in civil penalties sought by the SEC. CEO Brad Garlinghouse said at X Platform that the ruling was a victory for Ripple, the industry, and the rule of law given that the court reduced the SECs proposed fine by 94%.

“The SEC sought $2 billion in damages, and the court found that they had overreached, reducing the amount by approximately 94%. We respect the court’s decision and have made it clear that we will continue to grow our company. This is a win for Ripple, the industry, and the rule of law. The SEC’s headwind to the entire XRP community is gone.”

Earlier in July, Brad Garlinghouse expected the company to settle its years-long lawsuit with the U.S. SEC soon. Data from analytics firm Santiment showed that the level of activity on the XRP ledger and the creation of new addresses have also reached their highest level since March.

Ripple Chief Legal Officer Stuart Alderotyz said the company will respect the $125 million fine. The judgment is final. The court rejected the SECs suggestion that Ripple acted recklessly and reminded the SEC that this case does not involve any allegations of fraud or willful misconduct, and no one suffered any financial loss. She rejected the SECs ridiculous request for $2 billion in fines and penalties. We respect the $125 million penalty awarded by the court.

The lawsuit is not over yet

In 2020, the U.S. SEC accused Ripple of raising $1.3 billion by selling XRP, claiming that XRP was an unregistered security.

In July 2023, the judge ruled that Ripples direct sales of XRP to institutional clients violated federal securities laws, but that programmatic sales of XRP to retail investors through exchanges did not violate any securities laws. During the trial, the SEC tried to appeal this part of the ruling but failed.

Ripples fourth consecutive victory over the SEC seems to herald Ripples reappearance, but the shadow of the lawsuit has not completely dissipated. The SEC may still appeal the ruling in the next 60 days, which means that the legal dispute surrounding XRP may continue. But this victory has undoubtedly boosted Ripples confidence and helped to change the current sluggish market.

This article is sourced from the internet: The $125 million fine is far lower than expected, Ripple once again defeated the SEC

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