$125 million fine: Ripple's lawsuit with the SEC finally ends
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$125 million fine: Ripple's lawsuit with the SEC finally ends
This civil penalty is significantly lower than the SEC's previously requested "outrageous" amount of $2 billion.
Navigating Web3 tides with focused insightsSource: zycrypto
Compiled by: Blockchain Knight
A New York court on Wednesday ordered fintech company Ripple to pay a $125 million fine following its July 2023 ruling that the institutional sale of XRP violated federal securities laws.
The civil penalty is significantly lower than the "outrageous" $2 billion amount previously sought by the SEC (U.S. Securities and Exchange Commission), marking another milestone in the regulator’s long-running lawsuit. XRP investors view this as a major bullish signal—cryptocurrency assets surged nearly 24% after the verdict was announced.
Ripple has once again achieved a partial victory in its prolonged legal battle with the SEC.
In a filing submitted on August 7 to the U.S. District Court for the Southern District of New York, Judge Analisa Torres ordered Ripple to pay a $125 million civil penalty and ruled that 1,278 transactions violated securities laws.
Judge Torres stated: "The remedies requested by the SEC and the proposed final judgment are hereby granted in part and denied in part. The court shall enter a final judgment enjoining Ripple from further violations of securities laws and imposing a civil penalty of $125 million."
This $125 million penalty is far below the $1 billion in disgorgement plus prejudgment interest and $900 million in civil fines initially demanded by the SEC.
Notably, the judge prohibited Ripple from future violations of federal securities laws, clarifying that while the company had not been found to have broken any laws after the SEC filed its lawsuit, it likely engaged in “borderline” conduct.
The remedial measures announced on Wednesday follow Judge Torres’ July 2023 ruling in the case, where she determined that Ripple’s direct sales of XRP to institutional customers violated federal securities laws. However, she also ruled that Ripple’s programmatic sales of XRP to retail customers via cryptocurrency exchanges did not violate any securities laws.
Ripple must pay the $125 million penalty to the SEC within 30 days of the final judgment taking effect. Payment can be made via electronic bank transfer or certified check.
Ripple CEO Brad Garlinghouse said in an X post published on August 7 that given the court slashed the SEC's proposed penalty by a staggering 94%, the ruling could be seen as “a shared victory for Ripple, the crypto industry, and the rule of law.”
Ripple’s chief legal officer, Stuart Alderoty, said the company will “respect the $125 million penalty.”
Garlinghouse added: “We respect the court’s decision and will continue building our company. The resistance from the SEC against the entire XRP community has now ended.”
Now, a wave of optimism is sweeping through XRP investors, who believe this latest courtroom win could serve as a catalyst pushing the token’s price to new all-time highs.
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