Key Insights
- Ripple ordered to pay $125 million fine as part of settlement with the SEC in long-running legal dispute over XRP cryptocurrency.
- Court grants SEC’s motion for remedies in part, imposing injunction on Ripple to prevent future securities law violations.
- Ripple CEO says the reduced penalty reflects the SEC “overplaying its hand”, views the outcome as a victory for the company and crypto industry.
NEW YORK (MarketsXplora) – Blockchain firm Ripple has been ordered to pay a $125 million penalty as part of a settlement with the U.S. Securities and Exchange Commission (SEC) in their long-running legal battle, according to a court filing.
The ruling, signed by Judge Analisa Torres of the U.S. District Court for the Southern District of New York, grants the SEC’s motion for remedies against Ripple in part, while denying it in part.
The court’s final judgment enjoins Ripple from further violations of securities laws and imposes the $125,035,150 civil penalty on the company. This amount is significantly lower than the SEC’s original proposed penalty of $2 billion.
“The SEC’s motion for remedies and the entry of final judgment is granted in part and denied in part,” the filing stated.
Ripple CEO Brad Garlinghouse had previously expressed confidence in reaching a resolution to the outstanding legal issues “very soon.”
The SEC had accused Ripple of raising $1.3 billion through the sale of its XRP cryptocurrency, which the regulator considers an unregistered security. While the court ruled that some of Ripple’s XRP sales did not violate securities laws, it found that other direct sales to institutional investors were securities transactions.
“The Court’s decision reflects that the SEC overplayed its hand,” Garlinghouse said in a post on X (formerly Twitter). “We respect the Court’s decision and have clarity to continue growing our company. This is a victory for Ripple, the industry and the rule of law.”
An SEC spokesperson acknowledged the court’s ruling, noting that the $125 million penalty was “much more” than what Ripple had proposed, which was around $10 million. The spokesperson also highlighted the court’s comments on the “egregiousness of Ripple’s conduct” and the serious nature of the securities law violations.