Investing.com – Ripple Scores Major Victory in SEC Lawsuit
August 8, 2024 – In one of the crypto market’s most notorious legal battles, Ripple Labs scored a major victory against the US Securities and Exchange Commission (SEC). The lawsuit, originally valued at $2 billion, was settled for a mere $125 million in civil fines.
This compromise represents a significant win for Ripple, demonstrating its resilience against regulatory pressure. The lengthy legal battle, spanning several years, finally ends with a clear victory for Ripple, which paid a fraction of the original demand.
Court Findings:
The court concluded:
- Ripple must pay $125,035,150 in civil fines.
- Ripple violated securities laws in its institutional sales of XRP.
- While violations occurred, no fraud was established.
- The sale of XRP was not an unregistered security offering.
- Sales by co-founders Chris Larsen and Brad Garlinghouse were deemed legitimate.
CEO Brad Garlinghouse emphasized that the $125 million penalty pales in comparison to the initial $2 billion request. He believes the SEC used the case to set an example, but the court ultimately imposed much smaller fines, recognizing the lack of fraud.
The arduous journey for Ripple Labs is finally over, with the SEC failing to prove significant losses or investor harm. This outcome represents a significant milestone for the company, allowing it to move forward with renewed legal support.
Market response was positive, with the XRP price soaring by 25%, recovering from its recent low and surpassing the $0.60 mark.
Industry experts echoed the sentiment of victory. James Seyffart, an analyst, stated that the outcome should be seen as a win for Ripple, despite the relatively high fines.
Ripple’s legal team and co-founder Chris Larsen celebrated the end of the SEC campaign. This victory sends a powerful message to the crypto community, demonstrating the ability to resist oppressive regulations and thrive.