A U.S. federal judge, Analisa Torres, has ruled that Ripple Labs must pay a $125 million fine for selling its XRP token without proper registration. This penalty is significantly lower than the nearly $2 billion the Securities and Exchange Commission (SEC) originally sought.
The ruling wraps up a protracted legal battle that has drawn considerable attention within the cryptocurrency sector.
Ripple’s CEO and CLO Respond to Legal Outcome
The dispute began in 2020 when the SEC alleged that Ripple was fundraising through unregistered XRP sales, arguing that the digital token qualified as a security. The SEC filed its lawsuit in December 2020, leading to a major legal challenge for Ripple.
Judge Torres’s August 7 decision clarified that Ripple's actions did not constitute fraud, which played a crucial role in determining the final fine. The judgment also mandates that Ripple adhere to the Securities Act, ensuring compliance with securities regulations moving forward.
Ripple CEO Brad Garlinghouse praised the court’s decision, noting that the reduced fine of around 94% from the SEC’s initial demand allows Ripple to continue its growth with greater clarity.
“This is a win for Ripple, the industry, and the rule of law. The SEC’s challenges against the XRP community have been resolved,” Garlinghouse stated on X (formerly Twitter).
Stuart Alderoty, Ripple’s Chief Legal Officer, underscored that the case did not involve fraud or intentional misconduct, nor was there any reported financial harm.
“We accept the $125 million fine imposed by the court for certain past sales to sophisticated third parties,” Alderoty remarked.
Price Reaction: In response to the court’s ruling, XRP saw a notable price surge, climbing from $0.5018 to $0.6373—an increase of 27%—within just 90 minutes. As of now, XRP is trading at $0.6171.
