SEC v Ripple: SEC Will Not Appeal Court Ruling Against Ripple
NEW DELHI (CoinChapter.com) – The US Securities and Exchange Commission (SEC) has decided not to appeal the recent court ruling in the case of the SEC v Ripple. The legal battle of the SEC v Ripple concluded on August 7. Ripple now faces a much smaller penalty than what the SEC had originally demanded.
Judge Torres Orders $125 Million Fine, No Profit Disgorgement
Judge Torres ruled that Ripple must pay a $125 million civil penalty for breaking securities laws in sales to institutional investors. This amount is significantly lower than the nearly $2 billion initially sought by the SEC. The court also ruled that Ripple does not need to return any profits. Additionally, an injunction was issued to prevent Ripple from further violations of Section 5 of the Securities Act.
SEC Finally Breaks Silence
Ripple’s executives quickly celebrated the ruling on social media, while the SEC remained silent at first. On Thursday, FOX Business journalist Eleanor Terrett obtained a statement from the SEC. The agency highlighted that the court agreed with its request for a substantial penalty and an injunction to prevent future violations.
Source: X
The Court granted the SEC’s motion for remedies, including an injunction and significant civil monetary penalties totaling more than 12 times the amount Ripple suggested. Ripple’s willingness to push the boundaries of the Court’s summary judgment order indicates a likelihood of future violations.
the SEC stated.
The SEC expressed satisfaction with the court’s recognition of “the egregiousness of Ripple’s conduct” and stressed that the securities laws apply to all investment contracts, regardless of the technology used.
Ripple Executives Celebrate Court’s Decision
Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty were pleased with the ruling. Garlinghouse highlighted the court’s rejection of the SEC’s high financial demands, calling it a “victory for Ripple, the industry, and the rule of law.”
Source: X
Alderoty appreciated the dismissal of the SEC’s “absurd” financial demands, noting the absence of fraud or financial harm allegations.
Both Ripple and the SEC appear satisfied with the outcome, making an appeal unlikely. Journalist Eleanor Terrett speculated that the SEC might consider appealing another part of the case decided in July 2023, but this seems improbable. Pro-XRP lawyer Fred Rispoli agreed, noting that both sides’ statements suggest they are content with the ruling.
The post SEC v Ripple: SEC Will Not Appeal Court Ruling Against Ripple appeared first on CoinChapter.
