Ripple Ordered to Pay $125M in Securities Law Violation Case, Possibly Ending SEC vs. Ripple Conflict
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On Wednesday, a federal judge ordered Ripple Labs to pay $125 million in civil penalties for violating securities laws, possibly ending the long SEC Vs. Ripple case. District Judge Analisa Torres of the Southern District of New York imposed the fine after finding that Ripple's 1,278 institutional sale transactions breached securities regulations.
The penalty, although substantial, is significantly lower than the $1 billion in disgorgement and prejudgment interest, along with $900 million in civil penalties, initially sought by the SEC.
The SEC's Legal Battle with Ripple
The SEC filed its lawsuit against Ripple Labs in November 2020, accusing the company of conducting unregistered securities sales by raising $1.3 billion through the sale of XRP tokens. The recent ruling by Judge Torres marks a pivotal moment in this three-year legal battle.
The court's decision grants part of the SEC's motion for remedies, while also denying other aspects. In addition to the financial penalty, Ripple is enjoined from future securities law violations.
The $125 million fine, much lower than the SEC's original request, has stirred discussion within the crypto community. Many are contemplating whether the SEC will appeal the ruling, given the discrepancy between the imposed penalty and their initial demands.
Ripple had argued for a lower penalty, suggesting an amount around $10 million, but the court's final decision settled on the mid-range figure.
