Ripple vs SEC Lawsuit Ends, XRP Price Surges 17% Following Favorable Court Ruling
Ripple Penalized Heavily!
Hey there! Have you heard the latest news about Ripple vs. the SEC? 🤔
On August 7, 2023, Judge Analisa Torres ordered Ripple Labs to pay a hefty $125 million civil penalty. Yep, you read that right – $125 million.
Source: SDNY
In addition, Ripple has been permanently restrained from violating U.S. securities laws. They were found liable for 1,278 transactions that breached Section 5, resulting in this massive penalty.
Implications of the Injunction
Judge Torres noted that Ripple’s sales after the SEC complaint may not have broken federal law but saw a risk of future violations. She stated,
“Ripple’s willingness to push boundaries shows a likelihood of eventually crossing the line.”
Ripple's Response and Industry Impact
Ripple CEO Brad Garlinghouse called the ruling a “victory for Ripple, the industry, and the rule of law,” emphasizing the reduced penalty. Ripple’s chief legal officer, Stuart Alderoty, agreed, confirming the company’s acceptance of the $125 million fine.
Garlinghouse expressed optimism about Ripple’s future, stating, “We respect the Court’s decision and have clarity to continue growing our company. The SEC’s challenges against the XRP community are gone.”
Market Reaction
This ruling likely brings Ripple's case with the SEC to an end, marking a significant development since December 2020. In July 2023, Judge Torres ruled that the XRP token was not a security in programmatic sales on exchanges.
Following the ruling, the price of XRP rose by about 24%, from $0.50 to $0.62, showing market confidence in Ripple's position.
Source :Coinpedia Markets
Final Thoughts
The resolution of this landmark case sets a precedent for future regulatory actions in the cryptocurrency industry. Ripple's handling of these legal challenges will likely influence the broader landscape of digital assets and securities regulation.
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