As Brad Garlinghouse, CEO of crypto payment provider Ripple Labs, said last month, the company’s multi-year lawsuit with the U.S. Securities and Exchange Commission (SEC) came to an end today (8). Ripple was fined $125 million and imposed an injunction in accordance with the SEC’s claims. .
(Ripple’s legal showdown with the SEC enters final arguments, with results expected in September)
Ripple fined $125 million, banned
Institutional sales fined
Legal documents from the District Court for the Southern District of New York state that Judge Analisa Torres has made a final ruling on the four-year-old Ripple case, granting part of the SEC’s motion and imposing a $125 million civil penalty on Ripple.
(After reading the XRP court documents, explain in detail the reasons why XRP and the currency circle are not free from securities risks)
It is reported that this order follows Torres’ ruling in the case in July last year, stating that Ripple’s direct sales of XRP to institutional investors violated securities laws, while other planned sales of XRP through exchanges were not illegal:
Based on the court’s independent analysis of Ripple’s expert reports, the court found that 1,278 institutional transactions violated securities laws and imposed a civil penalty of $125 million, payable to the SEC within 30 days.
imposition of permanent ban
At the same time, Judge Torres also agreed with the SEC’s claim to impose a permanent ban on Ripple, saying that Ripple may still violate securities laws in the future:
Courts currently hold that Ripple’s planned and other XRP sales do not violate securities laws, however, Ripple’s willingness suggests they may still cross the line.
"In summary, the court considers that the likelihood of future violations is substantial and warrants an injunction," he said.
It is reported that the injunction will require the company to submit a registration certificate to the SEC whenever it intends to conduct future activities that may involve the sale of securities.
Far less than the $2 billion fine sought by the SEC
Previously, the two sides in the case had always disagreed on the amount of the fine. In June, Ripple criticized the SEC's request for a fine of up to US$2 billion and cited the judgment of the Terraform case, arguing that the fine should be no more than US$10 million as the most reasonable.
(Ripple Labs criticized the SEC’s fine of 2 billion mg as too much, citing the Terraform settlement case: a fine of 10 million is just right)
However, the SEC later expressed its opposition to this, believing that the excessively low fine was not enough to achieve the desired punishment effect.
Ripple: A victory for XRP, industry and the rule of law
Ripple CEO Brad Garlinghouse responded, believing that the court's reduction of the SEC's claims was a victory for Ripple and the entire crypto industry:
Faced with the SEC's $2 billion demand, the court deemed it excessive and reduced the fine by 94%. This is a victory for XRP, the entire industry, and the rule of law, and now the SEC’s resistance to the entire XRP community is gone.
He added, "We respect the court's decision and continue to develop our company with greater clarity."
Two weeks ago, he revealed in an interview that the company would resolve its years-long lawsuit with the SEC "soon."
SEC: Institutional sales still violate securities laws
In response, an SEC spokesperson reiterated the court’s approval of the injunction against Ripple and emphasized the seriousness of its institutional sales:
As the court has shown, Ripple’s repeated and highly profitable institutional sales violations are a serious crime, so securities laws will apply when a company offers and sells investment contracts, regardless of the technology or rhetoric used.
(The CEO of Ripple Labs is facing a lawsuit for calling out XRP. Could XRP meet the definition of a security at this time?)
XRP rose more than 20% on the news
As Ripple's more than three-year court battle comes to an end, the price of its XRP token has surged by more than 20% in 24 hours.
This article brings the Ripple case to an end! XRP was fined US$125 million and imposed a permanent ban. XRP soared 20% after hearing the news. First appeared on Chain News ABMedia.
