Court fines Ripple Labs USD125M following 4-year SEC legal battle
(MENAFN) Ripple Labs, a US-based technology company known for its Ripple payment protocol and exchange network, was fined USD125 million on Wednesday following a lengthy legal battle with the US Securities and Exchange Commission (SEC) that spanned four years.
Judge Analisa Torres of New York issued the ruling, stating that the SEC’s motion for remedies and the entry of final judgment was partially granted and partially denied. The final judgment includes an injunction against Ripple to prevent further violations of securities laws and imposes a civil penalty of USD125,035,150.
The SEC's case against Ripple began in 2020 when the agency accused the company of raising USD1.3 billion through the sale of its native cryptocurrency, XRP, which the SEC classified as an unregistered security. Although Judge Torres ruled last year that some of Ripple's XRP sales did not breach securities laws, she determined that other direct sales to institutional investors did constitute violations.
Following Wednesday’s final ruling, the value of XRP experienced a notable increase, reaching as high as USD0.6434. By 6 p.m. EDT (2200 GMT), XRP was trading around USD0.6273, marking a daily gain of 23 percent. This surge in XRP’s value reflects a positive market reaction to the resolution of the legal dispute.
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