Ripple case comes to a close! Fined $125 million, facing permanent injunction, XRP surges 20% on the news

As Ripple Labs CEO Brad Garlinghouse stated last month, the company's years-long legal battle with the U.S. Securities and Exchange Commission (SEC) has come to a conclusion today, with Ripple being fined $125 million and subject to an injunction as per the SEC's claims.

Ripple's legal showdown with the SEC reaches final arguments, outcome expected in September

Ripple Fined $125 Million and Faces Ban

Institutional Sales Penalties

The legal documents from the Southern District of New York revealed that Judge Analisa Torres has made a final ruling on the four-year legal battle involving Ripple, approving some of the SEC's motions and imposing a $125 million civil penalty on Ripple.

After reading the XRP court documents, a detailed explanation of why XRP and the crypto market are still exposed to securities risks

Reportedly, this order follows Torres' ruling last July, stating that Ripple's direct sales of XRP to institutional investors violated securities laws, while planned sales of XRP through exchanges did not:

According to the court's independent analysis of Ripple's expert reports, the court found that 1,278 institutional transactions violated securities laws, resulting in a $125 million civil penalty to be paid to the SEC within 30 days.

Permanent Ban Implemented

Additionally, Judge Torres agreed with the SEC's argument for a permanent ban on Ripple, citing the potential for future violations of securities laws:

The court currently believes that Ripple's planned and other XRP sales did not violate securities laws, however, Ripple's intentions indicate they may still cross the line.

It was stated, "In sum, the court sees a high likelihood of future violations, hence the need for a ban."

It is noted that the ban will require the company to register with the SEC for any future actions that may involve securities sales.

Fine Much Lower Than SEC's $2 Billion Demand

Previously, there was a discrepancy between the parties regarding the fine amount, with Ripple criticizing the SEC's demand for up to $2 billion in June, citing the judgment in the Terraform case and arguing that a fine not exceeding $10 million would be more reasonable.

Ripple Labs Criticizes SEC's $2 Billion Fine, Refers to Terraform Settlement: $10 Million is Just Right

However, the SEC later opposed this, believing that a too low fine would not achieve the necessary punitive effect.

Ripple: Victory for XRP, Industry, and Legal Governance

Ripple CEO Brad Garlinghouse responded to this statement, stating that the court reduced the SEC's demands, which is a victory for Ripple and the entire crypto industry:

Facing the $2 billion demand from the SEC, the court deemed it excessive and reduced the fine by 94%. This is a victory for XRP, the industry, and legal governance, as the SEC's resistance to the entire XRP community has now disappeared.

He added, "We respect the court's decision and will continue to develop our company more clearly."

Two weeks ago, he hinted in an interview that the company would soon resolve the long-standing litigation with the SEC.

SEC: Institutional Sales Still Violate Securities Laws

In response, an SEC spokesperson reiterated the ban approved by the court for Ripple and emphasized the seriousness of its institutional sales:

As the court has indicated, Ripple's repeated and highly profitable violations of institutional sales are a serious offense, so when a company offers and sells investment contracts, regardless of the technology or rhetoric used, securities laws will apply.

Ripple Labs CEO Dares SEC Lawsuit, Is XRP Now Likely to Meet the Definition of a Security?

XRP Surges Over 20% on News

As Ripple's over three-year court battle nears its end, the price of its XRP token has surged over 20% within 24 hours.