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Ripple Faces $125 Million Fine in SEC Lawsuit
Ripple Labs has been ordered to pay a fine of $125 million as part of the ongoing legal battle with the United States Securities and Exchange Commission (SEC). This amount is significantly lower than the hefty penalties the SEC initially sought in this case.
The ruling by Judge Analisa Torres concluded with a fine that is a mere fraction of the $1 billion in disgorgement and prejudgment interest, along with an additional civil penalty of $900 million that the SEC had demanded.
Following the announcement of this decision, XRP investors reacted positively, witnessing a surge of over 20% in the cryptocurrency’s value almost immediately.
Details of the Court’s Ruling
The court’s filing stated, “The SEC’s motion for remedies and the entry of final judgment is granted in part and denied in part. […] The Court shall enter a final judgment enjoining Ripple from further violations of the securities laws and imposing a civil penalty of $125,035,150.”
In a previous ruling in July 2023, Judge Torres determined that Ripple’s programmatic sales of XRP to retail investors via centralized exchanges did not breach securities laws. However, she found that the company had violated these laws by selling XRP directly to institutional clients, which is the basis for the current penalty.
Additionally, Judge Torres has prohibited Ripple from engaging in any future violations of securities regulations.
Ongoing Developments
The situation continues to evolve as further developments in the case unfold.
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