Ripple Fined $125 Million, Lower than SEC Demand

Bittime - The legal case between Ripple and the US SEC has reached a new point. Ripple was fined $125 million. The verdict is much lower than the SEC's initial demand of $2 billion, but still higher than Ripple had hoped for, which was around $10 million.  

Ripple vs SEC Case

The Ripple versus SEC case began in 2020 when the SEC accused Ripple of raising $1.3 billion through the sale of XRP, which the SEC said was an unregistered security. 

These accusations were the start of a protracted legal battle. Ripple is trying to prove that XRP is not a security and therefore does not violate applicable securities laws.

In the middle of last year, Judge Torres ruled that some XRP sales by Ripple, known as programmatic sales, did not violate securities laws because they used a closed auction process. 

However, Judge Torres also stated that the direct sale of XRP tokens to institutional investors was a violation of securities law.

Read Also: Ripple Case Will Be Completed Soon, Can XRP Price Touch ATH?

Ripple: This Verdict is a Win for Ripple

The latest ruling required Ripple to pay a $125 million fine, which was the result of lengthy negotiations between the two parties. Although the amount of this fine is much smaller than what the SEC proposed, Ripple is still obliged to stop any future violations of securities laws. 

Judge Torres emphasized that there was a high likelihood of future violations, which was the basis for the court to issue the prohibitory order.

Ripple CEO Brad Garlinghouse welcomed the ruling and called it a victory for Ripple, the crypto industry and the rule of law. Garlinghouse highlighted that the court had reduced the SEC's lawsuit by nearly 94%, as well as recognizing that the SEC had overstepped its bounds in this case.

Garlinghouse also stated that this ruling provides clarity for Ripple to continue developing the company without looming legal threats. He added that the obstacles faced by the XRP community have been overcome, and Ripple now has more room to grow.

SEC: Court Admits Ripple Guilty

Although the SEC's demands were not completely granted, an SEC spokesperson confirmed that the court had agreed to most of their demands, including a restraining order against Ripple from violating securities laws. 

The SEC emphasized that the fine imposed was much larger than that proposed by Ripple. The SEC spokesperson also emphasized that the court recognized the seriousness of the violations committed by Ripple. 

In its written statement, the SEC stated that Ripple's repeated violations were serious violations of securities law. The court emphasized that securities laws apply when companies offer and sell investment contracts, regardless of the technology or label used.

Read Also: Recent Ripple vs SEC Case: Developments and Impact

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