On Wednesday 7 August 2024, Judge Analisa Torres ruled that Ripple must pay $125m in civil penalties and banned it from future transgressions of US securities regulations.
Ripple To Pay $125m In Civil Penalties
The US Securities and Exchange Commission (SEC) brought the case against the blockchain-oriented digital payment network back in November 2020. The financial watchdog claimed that Ripple had performed unregistered securities sales after levying $1.3bn by selling XRP tokens.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
Initially, the SEC wanted a $2bn penalty to be imposed. Ripple opposed this, arguing that $10m was more reasonable. Financial experts believe that this ruling may mark the end of the SEC’s case against Ripple. Brad Garlinghouse, the company’s CEO, took to X and posted:
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. This is a victory for Ripple, the industry and the rule of law. The SEC’s headwinds against the whole of the XRP community are gone.
Talk in crypto circles revolves around whether or not the SEC will appeal Judge Torres’ ruling. The judge also stated that Ripple will likely transgress securities laws and therefore imposed the ban. She stated:
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. On balance, the Court finds that there is a reasonable probability of future violations, meriting the issuance of an injunction.
