On Wednesday (yesterday), District Judge Analisa Torres of the Southern District of New York ordered Ripple to pay $125 million in civil penalties and imposed an injunction against future violations of securities laws. This decision follows a finding that Ripple’s 1,278 institutional sale transactions breached securities regulations.

Judge Reduces SEC Penalty

The fine of $125.035 million is significantly lower than the $1 billion in disgorgement and prejudgment interest and the $900 million in civil penalties sought by the SEC.

This decision follows Judge Torres' July 2023 ruling, which determined that Ripple's direct sales of XRP to institutional clients violated federal securities laws. However, she found that Ripple’s programmatic sales of XRP to retail clients through exchanges did not constitute a violation.

IT'S OVER! The SEC v Ripple case has been quite a journey - thanks for sharing it with me.

$125 Million penalty and a GENERIC injunction Order.

This is a BIG win for Ripple, no doubt about it. Have a Wonderful Day! https://t.co/hCZZYsMl7E pic.twitter.com/7uuuwsx0Dw

— Jeremy Hogan (@attorneyjeremy1) August 7, 2024

SEC Likely to Appeal

The SEC had attempted to appeal the ruling concerning retail sales while the case was ongoing but was unsuccessful. On Wednesday, Judge Torres also issued an injunction prohibiting Ripple Ripple Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may Read this Term from future violations of securities laws.

The judge noted that while Ripple has not been found to have violated laws since the SEC filed the lawsuit, there is a concern that Ripple might “cross the line” with its “on demand liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term” offerings.

The injunction mandates that Ripple must file a registration statement if it intends to sell any securities. The SEC is expected to appeal the July 2023 ruling now that the judge has imposed penalties, after previously being denied an interlocutory appeal. Following the judgment, XRP’s price increased by 3 cents, or approximately 2%.