The long-running legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs is coming to an end, with a final court ruling ordering Ripple to pay a civil penalty of $125 million in compensation for institutional sales of its native token XRP.
According to the court's August 7 ruling, Judge Analisa Torres, who has overseen the case for the past three years, ordered #Ripple to pay a $125 million fine for selling #XRP to institutional investors without registering it as a security.
This decision follows last year's verdict in which Judge Torres ruled that Ripple's sale of XRP to institutional investors constituted an unregistered sale of securities under the Howey test. In finding Ripple liable for sales to institutional investors, Judge Torres ruled that programmatic sales of XRP to retail customers through exchanges did not violate federal securities laws. The ruling includes an injunction prohibiting Ripple from making further unregistered sales of XRP to institutional customers.
The latest development comes ahead of the launch of Ripple's stablecoin currency, Ripple USD (RLUSD), which the SEC has deemed an "unregistered cryptoasset, meaning the company can continue to engage in unregulated activities without a permanent injunction.
As a result, the fine, while exceeding Ripple's proposed $10 million, is significantly less than the approximately $2 billion the SEC originally sought, including substantial pre-judgment damages and interest.
the judgment, the court rejected the SEC's claim for Ripple's profits from institutional sales on the grounds that the evidence of material damages necessary for recovery was speculative and insufficient to prove actual economic damages.
the court also found that the comparison to de In a recent statement, Garlinghouse said:
"We respect the court's ruling and intend to continue to grow the company.
The story of SECGov v.
Read us at: Compass Investments
