Ripple Labs has been ordered to pay a staggering $125 million civil penalty in a legal battle with the U.S. Securities and Exchange Commission (SEC), marking a critical moment in the ongoing debate over cryptocurrency regulations. On August 7, Judge Analisa Torres of the U.S. District Court for the Southern District of New York issued the ruling, holding Ripple accountable for over 1,200 transactions that violated U.S. securities laws.
The penalty, which Ripple must pay within 30 days, comes after both Ripple and the SEC presented competing motions. While Ripple argued for a maximum penalty of $10 million, the SEC sought as much as $2 billion. Ultimately, the court’s analysis led to the $125 million figure, significantly less than what the SEC initially demanded but still a substantial sum.
Judge Torres also issued a permanent injunction against Ripple, restraining the company from future violations of securities laws. Although the judge noted that Ripple’s post-SEC complaint sales may not have broken federal laws, she expressed concerns over the likelihood of future violations, citing Ripple’s tendency to push legal boundaries.
Despite the hefty fine, Ripple’s leadership, including CEO Brad Garlinghouse, framed the ruling as a victory. In an August 7 post on X (formerly Twitter), Garlinghouse emphasized that the court had slashed the SEC’s proposed penalty by 94%, calling it a win for Ripple and the broader cryptocurrency industry. Ripple’s chief legal officer, Stuart Alderoty, echoed this sentiment, stating that the company respects the court’s decision and is ready to move forward.
This ruling appears to bring Ripple’s prolonged legal battle with the SEC, which began in December 2020, closer to a conclusion. While Ripple celebrates the reduced penalty, the case has left a lasting impact on the cryptocurrency landscape, highlighting the complexities of regulating digital assets in the U.S.
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