Ripple Fined $125 Million For Institutional Sales Of XRP
According to CoinDesk, a federal judge has imposed a $125 million fine on Ripple after determining that its institutional sales of XRP violated federal securities laws. District Judge Analisa Torres of the Southern District of New York issued the penalty following her finding that 1,278 institutional sale transactions by Ripple breached securities regulations. This fine is significantly lower than the $1 billion in disgorgement and prejudgment interest and $900 million in civil penalties initially sought by the SEC.The judge reiterated her stance that Ripple''s programmatic sales of XRP to retail clients through exchanges did not violate federal securities laws. The SEC''s attempt to appeal this part of the ruling was unsuccessful during the case proceedings. In addition to the fine, Judge Torres imposed an injunction against future securities law violations by Ripple. She noted that while she is not making a judgment that Ripple has violated any laws since the SEC filed its lawsuit, the company''s actions suggest a likelihood of future violations.The injunction requires Ripple to file a registration statement if it plans to sell any securities in the future. The SEC is expected to appeal the July 2023 ruling now that the judge has imposed a sentence, following the denial of the SEC''s motion for an interlocutory appeal last year. The SEC and Ripple had previously settled charges related to CEO Brad Garlinghouse and other executives after the interlocutory appeal was denied. Following the judgment, the price of XRP saw a slight increase, rising by 3 cents or approximately 2%.