Ripple Labs Ordered to Pay $125 Million in SEC Lawsuit
Ripple Labs has been ordered to pay a $125 million fine after a federal judge ruled in favor of the Securities and Exchange Commission (SEC), which accused Ripple of violating US securities laws. Judge Analisa Torres of the US District Court for the Southern District of New York made the ruling on August 7, requiring Ripple to pay the amount within 30 days.
The court’s analysis, based on Ripple’s expert report, found that 1,278 transactions violated Section 5, resulting in a civil penalty of $125,035,150. The SEC had initially sought a maximum penalty of $2 billion, while Ripple proposed a $10 million cap.
In addition to the fine, the ruling includes an injunction preventing Ripple from future securities law violations. Judge Torres noted that while Ripple’s recent sales may not have broken federal law, there is a reasonable chance of future violations.
Ripple’s CEO, Brad Garlinghouse, called the decision a victory for Ripple, the industry, and the rule of law, highlighting that the court significantly reduced the SEC’s proposed penalty. Chief Legal Officer Stuart Alderoty also commented on the ruling.
This ruling marks the conclusion of Ripple’s legal battle with the SEC, which began in December 2020. Initially, the SEC’s lawsuit also targeted Garlinghouse and Ripple executive chair Chris Larsen, but all claims against them were dropped in October 2023.
The impact of this ruling extends beyond Ripple, setting a precedent within the crypto industry regarding compliance with US securities laws. This development will be closely watched by industry participants and regulators alike.
