Ripple vs. SEC: Lawsuit Ends with $125 Million Fine, XRP Surges by 27%

If you thought Wolverine vs Deadpool was the biggest fight in recent times, you might be wrong. The legal battle between the crypto company Ripple Labs and the United States Securities and Exchange Commission (SEC) is a big contender for the top battles of the year. Thankfully, it has finally ended.

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The crypto battle of the century ended thanks to US federal judge Analisa Torres. But while it’s a big win for both the SEC and Ripple Labs to finally end their long dispute, we can’t say it was exactly a win-win situation for everyone. Judge Torres unfortunately had to slam a $125 million penalty on Ripple Labs to keep everyone happy. 

Considering that the SEC was initially seeking a settlement of almost $2 billion, it might also be a win for Ripple Labs. But if nothing happens, both parties will be happy this phase is over. The case had begun since 2020 when the SEC accused Ripple of raising money through unregistered sales of XRP, claiming the digital token was a security. 

The SEC filed the lawsuit in December 2020, and there has been no progress until now. After considering the SEC’s claims, however, Judge Torres ruled on August 7 that Ripple’s actions did not involve fraud, and so she thought the $125 million fine was sufficient. 

After giving her judgement, Judge Torress enjoined Ripple Labs to refrain from further violations of the Securities Act and comply with all Securities laws. This particular ruling is historic because it has also clarified some regulatory stances on digital tokens. Other crypto companies will thank Ripple Labs for taking one for the team. 

As it stands, Ripple Labs seems to be okay with the court's decision. Brad Garlinghouse, the company’s CEO, has shown his respect by reducing the SEC demand by about 94%. He also expressed his relief that his company can finally move on and continue its business with the much-needed legal clarity the judgement has now provided.

Stuart Alderoty, Ripple’s Chief Legal Officer, also expressed his respect for the court's decision. He came out to clear the air of mystery that has shrouded the case for so long, stating that the case contained no allegations of fraud or deliberate misconduct, and no financial harm was reported.

It seems Ripple Labs has moved on from the events of the case, and so has their coin, XRP. Following the decision of the court, XRP saw a big boost in it’s price. The coin suddenly jumped from $0.5018 to $0.6373, an incredible 27% in just one and a half hours.

Related: Ripple's Vision for the Future: The Power of CBDCs

It’s an incredible record for Ripple Labs, and it will take their minds off the $125 million they just parted ways with. With this price boost, we can say it is a win for everyone: the SEC, Ripple Labs, and other crypto companies that have learnt a thing or two from the case.

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