WEB3
by BSC News
August 8, 2024
The court's decision is significantly lower than the $1 billion initially sought by the SEC.
On Wednesday, a federal judge ordered Ripple Labs to pay $125 million in civil penalties for violating securities laws, possibly ending the long SEC Vs. Ripple case. District Judge Analisa Torres of the Southern District of New York imposed the fine after finding that Ripple's 1,278 institutional sale transactions breached securities regulations.
The penalty, although substantial, is significantly lower than the $1 billion in disgorgement and prejudgment interest, along with $900 million in civil penalties, initially sought by the SEC.
The SEC filed its lawsuit against Ripple Labs in November 2020, accusing the company of conducting unregistered securities sales by raising $1.3 billion through the sale of XRP tokens. The recent ruling by Judge Torres marks a pivotal moment in this three-year legal battle.
The court's decision grants part of the SEC's motion for remedies, while also denying other aspects. In addition to the financial penalty, Ripple is enjoined from future securities law violations.
The $125 million fine, much lower than the SEC's original request, has stirred discussion within the crypto community. Many are contemplating whether the SEC will appeal the ruling, given the discrepancy between the imposed penalty and their initial demands.
Ripple had argued for a lower penalty, suggesting an amount around $10 million, but the court's final decision settled on the mid-range figure.
Judge Torres emphasized Ripple's potential for future violations, stating that the company's behavior suggests a likelihood of crossing legal boundaries again.
"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," Torres remarked.
Consequently, the injunction against future violations was deemed necessary.
Following the ruling, Ripple's CEO Brad Garlinghouse celebrated the decision on social media, 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…
Ripple Labs co-founder Chris Larsen also expressed relief, hoping the decision marks the end of what he described as the Administration's war on crypto.
The crypto community's response has been mixed. While many see the reduced penalty as a win for Ripple, others focus on the immediate impact on XRP's price.
"Overall, a HUGE win for Ripple. Although I’m surprised at the $125M hit, Ripple more than made that just on the price move in XRP in the last 5 minutes," commented crypto lawyer Fred Rispoli.
Meanwhile, crypto researcher Ripple Van Winkle expressed optimism about XRP's future.
The SEC wanted $2 Billion
— Ripple Van Winkle | Crypto Researcher 🚀🚨 (@RipBullWinkle) August 7, 2024
They will get $125 million and they can no longer come at @Ripple or #XRP for securities law
Word on the street is @GaryGensler is acting like this was a victory
The price of XRP surged by 25% after the ruling, as the market reacted positively to the resolution of the lengthy legal dispute.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
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