According to CoinDesk, Judge Analisa Torres of the District Court for the Southern District of New York fined Ripple approximately $125 million after finding that 1,278 of its institutional sales transactions violated securities laws. The fine is far less than the $1 billion in disgorgement and prejudgment interest and $900 million in civil penalties sought by the Securities and Exchange Commission (SEC).
Wednesday's order for relief follows a judge's ruling in the case itself in July 2023, when the judge ruled that Ripple violated federal securities laws by selling its cryptocurrency, XRP, directly to institutional customers, though she also ruled that Ripple sold its cryptocurrency, XRP, through an exchange to retail customers. The planned sale of XRP did not violate any securities laws.
Judge Torres on Wednesday also barred Ripple from future violations of federal securities laws, saying that while she did not find that Ripple violated any laws following the SEC's lawsuit, the company may be in violation of the law when it comes to its On-Demand Liquidity provision. )” part of the product “crosses the line.” The injunction documents require Ripple to file a registration statement if it intends to sell any securities.
At the same time as the verdict was announced, the price of XRP increased by more than 20%, trading at around $0.614 at press time. According to reports, the SEC may appeal the overall case.
Ripple CEO Brad Garlinghouse said on the social platform that the result is "a victory for Ripple, the industry, and the rule of law." "SEC resistance to the entire XRP community has disappeared,"
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.This is a victory for Ripple, the industry and the rule of law. The SEC’s…
— Brad Garlinghouse (@bgarlinghouse) August 7, 2024
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