Judge Fines Ripple $125M, Imposes Ban on Future Securities Law Violations
The post Judge Fines Ripple $125M, Imposes Ban on Future Securities Law Violations appeared on BitcoinEthereumNews.com.
A federal judge has ordered Ripple to pay $125 million in civil penalties and has imposed an injunction against future securities law violations. This decision marks a significant development in the long-standing case brought by the SEC against the cryptocurrency company. Judge Analisa Torres’ Ruling District Judge Analisa Torres of the Southern District of New York found that Ripple violated securities laws through 1,278 institutional sale transactions of XRP. Consequently, Ripple was fined $125.035 million, a figure significantly lower than the SEC’s original request for $1 billion in disgorgement, prejudgment interest, and $900 million in civil penalties. This ruling follows Judge Torres’ July 2023 decision, which concluded that Ripple’s direct sales of XRP to institutional clients violated federal securities laws. However, she also ruled that Ripple’s programmatic sales of XRP to retail clients through exchanges did not constitute securities law violations. The SEC’s attempt to appeal this portion of the ruling was unsuccessful during the case. Injunction Against Future Violations Judge Torres also issued an injunction against Ripple, preventing future violations of federal securities laws. While she did not rule that Ripple had committed new violations since the SEC’s lawsuit, she indicated that Ripple’s actions suggested a likelihood of future infractions. “Rather, the Court finds that Ripple’s willingness to push the boundaries of the Order evinces a likelihood that it will eventually (if it has not already) cross the line,” Judge Torres stated. “On balance, the Court finds that there is a reasonable probability of future violations, meriting the issuance of an injunction.” The injunction mandates that Ripple file a registration statement if it plans to sell any securities in the future. SEC’s Next Steps The SEC is expected to appeal the July 2023 ruling now that the judge has issued a sentence. This comes after Judge Torres denied the…
Filed under: News - @ August 8, 2024 12:20 pm