- Ripple to pay $125 million fine in civil penalties, rules Judge.
- The Judge also banned Ripple from breaking securities laws in the future.
- XRP skyrocketed by 20% after the ruling despite wider market dump.
In a court filing on Wednesday, Judge Analisa Torres ruled that Ripple Labs would pay a $125 million civil penalties fine and banned the company from future violations of securities laws.
Judge Torres had earlier ruled in July 2023 that only XRP's sale to institutions violated securities laws but was legal when sold to the public in crypto exchanges.
"The SEC's motion for remedies and the entry of final judgment is GRANTED IN PART and DENIED IN PART. The Court shall enter a final judgment enjoining Ripple from further violations of the securities laws and imposing a civil penalty of $125,035,150," the filing stated.
The Securities & Exchange Commission (SEC) initially requested a $2 billion fine on the firm, but Ripple argued for a lower amount, around $10 million.
The ruling marks a potential end to the SEC's case against Ripple Labs, which dates back to November 2020. The regulator accused the company of conducting unregistered securities sales after it raised $1.3 billion through the sale of XRP tokens.
Crypto community members are debating whether or not the SEC would appeal the ruling, considering the fine on Ripple is far from its request of $1 billion in disgorgement and prejudgment interest, and $900 million in civil penalty.
Ripple banned from breaking securities laws
Judge Torres also banned Ripple from violating securities laws in the future, as she stated that the company has the potential to "cross the line."
"Rather, the Court finds that Ripple's willingness to push the boundaries of the Order evinces a likelihood that it will eventually (if it has not already) cross the line," said Torres. "On balance, the Court finds that there is a reasonable probability of future violations, meriting the issuance of an injunction," she added.
Ripple's CEO Brad Garlinghouse took to the X platform to celebrate the win, calling it a victory for Ripple, the crypto industry and the rule of law.
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.
— Brad Garlinghouse (@bgarlinghouse) August 7, 2024
This is a victory for Ripple, the industry and the rule of law. The SEC’s…
Following the filing, XRP's price increased by 20% despite major declines across several top cryptocurrencies.
(This story was updated throughout to include key information from the court filing.)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.