CEO of Ripple (XRP), Brad Garlinghouse, shared a post on the social media platform X regarding the recent fine imposed on the firm by the United States Securities and Exchange Commission (SEC). In his message, he noted that the agency demanded $2 billion in the first place, but the Court lowered this amount by more than 94%, acknowledging that the agency had overreached. He expressed respect for this move and outlined Ripple’s intention to continue developing the company.
Brad Garlinghouse also noted that this development represents a positive outcome for the company, the entire cryptocurrency sector, and the rule of law, as the SEC’s challenges against the XRP community were addressed.
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
On Wednesday, Ripple was imposed with a $125 million fine as part of litigation. The measure resulted from the discovery that the entity had conducted 1,278 institutional sale transactions violating the securities law. Additionally, the firm was ordered by the court to discontinue such breaches further.
Ripple Faces Mixed Rulings In SEC Case Over $1.3B XRP Sales
The SEC blamed Ripple for accumulating $1.3 billion due to the sales of its token, which it classified as an unrecorded security, in 2020. The recent order on remedies comes following the judge’s July 2023 decision, which unveiled that Ripple had disobeyed federal securities laws via its direct sale of the token to the institutional clients. Nevertheless, the judge also ruled that Ripple’s programmatic sales of XRP to retail clients via exchanges did not break any laws.
Subsequently, in October, the regulator decided to drop its legal case against Brad Garlinghouse and the firm’s co-founder, Chris Larsen, regarding the executives alleged engagement in unlawful securities sales.
As of this writing, the price of XRP is over $0.60, reflecting an increase of 18.42% in the past 24 hours, according to data from CoinMarketCap.
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