Judge Cuts SEC's Requested Penalty against Ripple Labs by 94%, Imposes $125M Civil Penalty
- WBOYOriginal
- 2024-08-08 09:43:16391browse
District Judge Analisa Torres has cut the penalty requested by the U.S. Securities and Exchange Commission (SEC) in the case against Ripple Labs over XRP by 94%. The court partially granted the SEC's motion for remedies against Ripple, imposing a $125 million civil penalty.
A U.S. District Judge has partially granted the U.S. Securities and Exchange Commission’s (SEC) motion for remedies against Ripple Labs, imposing a $125 million civil penalty. The court also granted the SEC’s request for a permanent injunction against Ripple, enjoining the company from further violations of Section 5 of the Securities Act. However, the court denied the SEC’s request for disgorgement, finding that the SEC had not shown that Ripple’s conduct was willful.
The SEC filed a lawsuit against Ripple in December 2020, accusing the company of conducting unregistered securities offerings through its sale of XRP tokens. The SEC alleged that Ripple raised over $1.3 billion through these offerings, which were not registered with the SEC.
Ripple has denied the SEC’s allegations, arguing that XRP is not a security and that the SEC’s lawsuit is an overreach. The company has also argued that the SEC’s proposed remedies are excessive and unwarranted.
In a statement following the court’s ruling, Ripple said that the company is “pleased that the court recognized the SEC’s overreach and excessive demands.” The company also said that the court’s ruling “brings clarity to the XRP community, finally putting to rest the SEC’s unfounded claims that XRP is a security.”
The SEC declined to comment on the court’s ruling.
The court’s ruling is a significant development in the SEC’s ongoing lawsuit against Ripple. The court’s decision on the SEC’s motion for remedies will likely have a major impact on the parties’ settlement negotiations and the ultimate outcome of the case.
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