SEC scores a victory, court rules Ripple must pay $1.95 billion and bans the company from selling to institutions forever

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Ripple Ordered to Pay $1.95 Billion

Recently, Ripple executives confirmed that the SEC has requested a New York judge to impose a $2 billion fine on Ripple. According to legal documents, after fully considering relevant opinions, the judge approved the SEC's motion and issued the following orders in the final judgment:

• Ripple is required to return $876,308,712, which represents the net profit from violating securities sales.

• Under Section 20(d) of the Securities Act, Ripple must pay a civil fine of $876,308,712.

• Ripple is also required to pay $198,150,940 in pre-judgment interest.

In total, Ripple needs to pay $1.95 billion.

SEC Scores a Victory, Ripple Hit with Permanent Injunction

Previous reports indicated that the 2023 victory did not mean Ripple would walk away unscathed. At that time, Ripple's sale of coins to institutional investors, including institutional buyers, hedge funds, and ODL customers, was deemed as securities sales by the judge, which still awaits a final ruling later this year.

The judgment further states that Ripple will be permanently prohibited from directly or indirectly engaging in unregistered securities sales unless it has a valid registration statement. Without such, Ripple is not allowed to transport, sell, or deliver the security XRP through any business tool or communication method.

Institutional sales have been one of Ripple's sources of revenue, which could have a negative impact on future financial statements.

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