According to Bloomberg, the US District Court has ruled in favor of the Securities and Exchange Commission (SEC) in its case against Ripple Labs Inc. The SEC had sought nearly $2 billion in penalties, including over $876 million in disgorgement and more than $198 million in interest, along with an $876 million civil penalty. Ripple argued that it should not have to pay more than $10 million. Following the ruling, XRP, the cryptocurrency associated with Ripple, rose by as much as 25% to 64 cents. However, the token, which is the seventh largest cryptocurrency by market value, has seen little change this year amid a broader decline in cryptocurrency values due to global market risk aversion. The SEC and Ripple did not immediately respond to requests for comment on the decision. On Wednesday, US District Judge Torres granted the SEC’s request for an injunction preventing Ripple from conducting unregistered offerings of XRP to institutional investors. However, she denied the agency’s bid for Ripple to pay disgorgement of profits from its sales to institutional investors. In ordering Ripple to pay a civil penalty of $125 million, Judge Torres noted that the case did not involve allegations of fraud, misappropriation, or other more culpable conduct. She also stated that the SEC had not demonstrated that Ripple’s failure to register the sales with the agency caused substantial losses to investors. The case is officially titled SEC v. Ripple Labs Inc., 20-cv-10832, and is being heard in the US District Court for the Southern District of New York in Manhattan.