Ripple Labs Ordered to Pay $125 Million Penalty to SEC, XRP Market Value Surges 18%

This development comes as a conclusion to the long-standing legal battle where Ripple was accused of selling XRP tokens improperly

A Manhattan court has ordered Ripple Labs to pay a $125 million penalty to the U.S. Securities and Exchange Commission (SEC) in a case over XRP token sales.

Despite the penalty, XRP saw an 18% increase in market value.

The SEC had accused Ripple of raising over $1.3 billion in an unregistered securities offering.

After initially seeking $2 billion in fines, the court ordered a fraction of that amount.

Both Ripple and the SEC commented on the court's decision.

Ripple CEO Brad Garlinghouse expressed respect for the court's decision, which he said provides clarity for the company's future endeavors.

"The SEC asked for $2B, and the Court reduced their demand by ~94% recognizing that they had overplayed their hand. We respect the Court’s decision and have clarity to continue growing our company," Garlinghouse wrote on Twitter.

"This is a victory for Ripple, the industry and the rule of law. The SEC’s overreach has finally been curtailed after 2.5yrs of tireless effort by our team."

A spokesperson for the SEC said that the court's decision "underscores the universal application of the securities laws to any offering, no matter the label used or the technology touted."

XRP Market Performance

XRP's price saw a 23.63% increase over the last 24 hours, bringing its value to around $0.611575 per token at the time of writing, according to the latest updates.

With this surge, XRP's trading volume surpassed $5.67 billion, indicating increased activity in the market for the sixth-largest cryptocurrency by market capitalization.

According to CoinMarketCap, XRP had a live market cap of $34,034,113,378, ranking it seventh among all cryptocurrencies.

The token's price remained stable throughout the day, starting at just over $0.50, but it experienced a dramatic increase around midnight, peaking at roughly $0.63.

This spike, which occurred following a period of relative stability, suggests a sharp rise in buying activity, likely driven by traders reacting to positive sentiment or short-term market conditions.

After the spike, XRP's price experienced some fluctuations but largely maintained a range between $0.60 and $0.63.

A technical analysis of XRP's price movement reveals interesting characteristics.

The current MACD signal direction is bearish, indicating a potential shift towards bullish conditions if the MACD line crosses above the signal line.

Moreover, the Relative Strength Index (RSI) stands at 58.52, indicating that the asset is neither overbought nor oversold, suggesting a balanced market environment that could accommodate further price movements.

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