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The U.S. District Court for the Southern District of New York has determined that Ripple Labs is required to pay a $125 million penalty for breaching U.S. securities regulations in a case initiated by the Securities and Exchange Commission (SEC).
District Judge Analisa Torres found Ripple Labs liable for several violations of securities laws and, as part of the agreement with the SEC, mandated that the company pay a civil fine of $125 million within a 30-day timeframe.
Although the company acknowledged guilt on various counts, Ripple CEO Brad Garlinghouse referred to the court’s ruling as a “victory for Ripple, the industry, and the rule of law.” Notably, the SEC had initially pursued a $2 billion penalty, but the court’s decision referenced an independent evaluation of Ripple Labs’ financial documentation, previously ordered by the court, which indicated that only 1,278 transactions were in breach. As a result, the civil penalty was established at $125,035,150.
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Ripple CLO Stuart Alderoty remarked that the court’s choice to reduce the SEC’s suggested penalty by 94% illustrates that additional regulatory actions against the XRP community would be futile. He noted that the court only took into account “certain historic sales to sophisticated third parties,” implying that XRP was not classified as a security on a wider scale. Ripple Labs Co-Founder Chris Larsen also expressed optimism that this ruling would facilitate the complete resolution of the SEC case and conclude the regulator’s conflict with the cryptocurrency.
The ruling also included a court directive that legally forbids Ripple Labs from engaging in further violations of securities laws. Consequently, Ripple Labs must halt any activities that the court identified as infringing these regulations. In Judge Torres’s perspective, the company could eventually “cross the line,” and the court must consider such a possibility.
XRP experienced an increase of roughly 26% following the announcement of the court’s ruling. Based on CoinGecko data, the asset’s price escalated from $0.50 to $0.63 within a few hours. As of 4:00 p.m. (GMT+3), XRP was trading at $0.61.
The SEC initiated its lawsuit against Ripple in December 2020, alleging that the company utilized XRP as an unregistered security to generate funds. Initially, the lawsuit also included allegations against Brad Garlinghouse and Chris Larsen, but the regulator withdrew these claims in 2023. In July 2023, the court ruled that the XRP token is not a security when sold to retail investors.
Сообщение Ripple to Pay $125 Million Fine to Settle SEC Case появились сначала на CoinsPaid Media.
