Ripple Faces $125 Million Fine in Ongoing Lawsuit with U.S SEC

• At the time of writing, XRP is trading at $0.6024, up 18.15% in the last 24 hours.
• Ripple will be fined $125,035,150 and the court will issue a final judgment.

A court filing states that Ripple was fined $125 million as a result of its ongoing action with the U.S Securities and Exchange Commission (SEC). At the time of writing, XRP is trading at $0.6024, up 18.15% in the last 24 hours as per data from CMC.

According to the filing signed by New York Judge Analisa Torres, the SEC’s request for remedies and the entry of final judgment was partially granted and partially refused. Ripple will be fined $125,035,150 and the court will issue a final judgment prohibiting future breaches of the securities laws.

While speaking in July, Ripple CEO Brad Garlinghouse predicted that the company’s remaining legal matters will be resolved “very soon.” The SEC claimed in 2020 that Ripple raised $1.3 billion via the sale of XRP, an unregistered securities, and charged the company with the crime.

Slap on the Wrist

Since Ripple used a blind bid method for certain of its XRP transactions (known as programmatic). Judge Torres determined over a year ago that these sales did not break securities laws. On the other hand, she determined that further token sales to institutional investors constituted securities.

The SEC had requested a $2 billion punishment, but Ripple has offered a lesser amount. It ought to be closer to $10 million, according to Ripple. However, in a May filing, the SEC characterized Ripple’s proposed penalty as a “slap on the wrist.” Despite the fact that it was larger than its own. On Wednesday, Judge Torres also issued a ruling ordering Ripple to refrain from future violations of securities regulations.

Concerning the potential liability of Garlinghouse and co-founder Chris Larsen for their roles in unlawful securities sales, the SEC sought dismissal of their complaint against them in October.

Highlighted Crypto News Today:

Nexera Suffers Major Cyberattack, $2.9 Million in Tokens Stolen