U.S. District Judge Analisa Torres has imposed a $125 million fine on Ripple Labs for violating securities laws.
Judge Torres found that 1,278 institutional sales of Ripple (XRP) violated section 5 of the U.S. Securities Act. Ripple is also banned from further violations of federal securities laws.
The injunction requires Ripple to register its intentions if it wants to sell securities in the future, ensuring compliance moving forward. The ruling is the culmination of a case that began in December 2020, when the SEC filed a lawsuit against Ripple.
The SEC accused Ripple of raising over $1.3 billion through the sale of XRP without registering the token as a security. In July 2023, Judge Torres partially ruled in favor of Ripple, stating that XRP sales to retail customers did not violate federal laws.
However, the judge ruled that Ripple’s institutional offerings did violate securities laws. The SEC sought $1 billion in disgorgement and $900 million in civil penalties from Ripple.
The final penalty, $125 million, is significantly lower than the SEC’s demands. Ripple CEO Brad Garlinghouse described the ruling as a “victory” for the company and the crypto industry.
Ripple’s chief legal officer Stuart Alderoty also commented on the court’s decision. He noted that no allegations of fraud or deliberate misconduct were made against Ripple.
Following the ruling, the price of XRP jumped 18%, trading at $0.6051. This marks a 39% increase over 30 days and a 0.7% improvement over 7 days.
