Ripple SEC Lawsuit Continues to See a Victory for XRP
Key Points:
- A federal judge ordered Ripple Labs to pay $125 million for violating securities laws by selling XRP tokens to institutional investors, a significant reduction from the SEC’s $1.9 billion demand.
- XRP’s price surged over 20% following the decision as a victory for the blockchain company in the Ripple SEC lawsuit.
A federal judge ordered Ripple Labs to pay $125 million in civil penalties for breaking security laws over the sale of XRP tokens to institutional investors.
Read more: Ripple CEO Brad Garlinghouse Criticizes SEC for Hypocrisy and Lack of Transparency
Ripple SEC Lawsuit Gives Company Another Win
The fine was paltry compared to the $1.9 billion the U.S. Securities and Exchange Commission was eyeing in the long-winding Ripple SEC lawsuit.
Analisa Torres, the same judge who earlier ruled that XRP wasn’t secure over its programmatic sales to retail clients, arrived at the fine on July 13, 2023, following findings that Ripple’s institutional investors flouted the selling regulations for the XRP token. She added that a permanent injunction has to be issued in order to stop further violations.
The ruling was a deep discount to the SEC’s opening demands of $1 billion in disgorgement and prejudgment interest and another $900 million in civil penalties. It came on the heels of last year’s partial summary judgment handed down to both sides, which decided that while Ripple’s institutional sales violated securities laws, their programmatic sales didn’t.
XRP Price Surges as Ripple CEO Cheers Legal Win
Ripple CEO Brad Garlinghouse hailed the ruling as a victory not only for the firm but also for the crypto space in general and, more importantly, for the rule of law. Moreover, Garlinghouse said, “We respect the Court’s decision and have clarity to continue growing our company.”
The SEC had accused Ripple in 2020 of selling about $1.3 billion worth of unregistered XRP tokens to raise cash. Ripple SEC lawsuit has huge implications, importantly, for defining the attitude of the regulator toward digital currencies.
The price of XRP surged more than 20% following the announcement as investors expressed a positive sentiment on the outcome.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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Ripple SEC Lawsuit Continues to See a Victory for XRP
Key Points:
- A federal judge ordered Ripple Labs to pay $125 million for violating securities laws by selling XRP tokens to institutional investors, a significant reduction from the SEC’s $1.9 billion demand.
- XRP’s price surged over 20% following the decision as a victory for the blockchain company in the Ripple SEC lawsuit.
A federal judge ordered Ripple Labs to pay $125 million in civil penalties for breaking security laws over the sale of XRP tokens to institutional investors.
Read more: Ripple CEO Brad Garlinghouse Criticizes SEC for Hypocrisy and Lack of Transparency
Ripple SEC Lawsuit Gives Company Another Win
The fine was paltry compared to the $1.9 billion the U.S. Securities and Exchange Commission was eyeing in the long-winding Ripple SEC lawsuit.
Analisa Torres, the same judge who earlier ruled that XRP wasn’t secure over its programmatic sales to retail clients, arrived at the fine on July 13, 2023, following findings that Ripple’s institutional investors flouted the selling regulations for the XRP token. She added that a permanent injunction has to be issued in order to stop further violations.
The ruling was a deep discount to the SEC’s opening demands of $1 billion in disgorgement and prejudgment interest and another $900 million in civil penalties. It came on the heels of last year’s partial summary judgment handed down to both sides, which decided that while Ripple’s institutional sales violated securities laws, their programmatic sales didn’t.
XRP Price Surges as Ripple CEO Cheers Legal Win
Ripple CEO Brad Garlinghouse hailed the ruling as a victory not only for the firm but also for the crypto space in general and, more importantly, for the rule of law. Moreover, Garlinghouse said, “We respect the Court’s decision and have clarity to continue growing our company.”
The SEC had accused Ripple in 2020 of selling about $1.3 billion worth of unregistered XRP tokens to raise cash. Ripple SEC lawsuit has huge implications, importantly, for defining the attitude of the regulator toward digital currencies.
The price of XRP surged more than 20% following the announcement as investors expressed a positive sentiment on the outcome.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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