• Ripple has been fined $125 million in the lawsuit against the United States Securities and Exchange Commission (SEC)
• The fine is much lower than the $1.9 billion the SEC had previously sought
• The XRP price soared by over 20% immediately after the news broke
The case between the SEC and Ripple might finally be over. Ripple has been fined $125 million in the lawsuit against the United States Securities and Exchange Commission. This is just a fraction of what the SEC had previously asked for in the case.
Details of the Fine
The fine that Judge Analisa Torres settled on is far less than the $1 billion in disgorgement and prejudgment interest and $900 million in civil penalty the SEC sought.
XRP investors have seen this as a positive for the firm and the cryptocurrency, which exploded by more than 20% immediately after the news broke.
SEC Motion Granted in Part
“The SEC’s motion for remedies and the entry of final judgment is granted in part and denied in part. The Court shall enter a final judgment enjoining Ripple from further violations of the securities laws and imposing a civil penalty of $125,035,150,” reads the filing.
Meanwhile, it’s worth noting that back in July 2023 Judge Torres found that the programmatic sales of XRP to retail clients through centralized exchanges did not violate securities laws. However, she did rule that Ripple violated securities regulations through its direct sale of XRP to institutional clients, hence the above statement.
Conclusion
This decision seems to bring the long-running case between Ripple and the SEC closer to resolution. While Ripple did face a substantial fine, it avoided the massive penalties initially sought by the SEC. The relatively positive outcome for Ripple also gave a boost to XRP’s price. However, some issues, such as the injunction against future violations, still remain unresolved. The saga between Ripple and regulators appears to be nearing its end, but the final chapter has yet to be written.
