It took four years for the Ripple case to end. The SEC filed a lawsuit against Ripple in 2020 regarding the sale of XRP tokens. In the latest hearing, which took place on August 7, the court imposed a $125 million penalty on Ripple. Let’s take a look at what new developments have occurred in this case.
The legal battle between the SEC and Ripple, which started in December 2020, is the most-watched case in crypto history. The SEC wanted to impose a fine of at least $2 billion on Ripple for violating the Securities Act. Ripple had requested that the penalty not exceed $10 million. However, the court, in its decision, imposed a $125 million penalty on Ripple.
In July 2023, Ripple received a partial victory when the court declared that 1,278 institutional sales of XRP tokens violated Section 5 of the Securities Act of 1933. However, the programmatic sales made to retail investors did not violate this Act.
Following her old ruling, Judge Analisa Torres on August 7, declared a fine for Ripple. Along with the $125 million penalty, she also instructed Ripple to avoid further violations. Torres also rejected the SEC’s request for disgorgement and prejudgment interest, stating that the agency failed to show “pecuniary harm” justifying such penalties.
After the August 7 ruling, the SEC had 60 days to appeal. Now, only 17 days remain until the deadline, and so far, there has been no movement from the SEC. There are speculations in the market that the SEC may not want to extend the case further. Political reasons could be behind this, as it appears conditions for administrative changes are forming in November.
In 2023, the court also wanted to move forward with the charges the SEC had filed against Ripple’s CEO Brad Garlinghouse and co-founder Chris Larsen, but a Fortune report reveals that the SEC quietly dropped these charges in October.
Now, the entire community is watching whether the SEC will appeal the court’s decision or not. If the SEC does not appeal, Ripple will be free after paying the $125 million penalty, and the case, which has been ongoing for four years, will be declared closed. On the other hand, if the SEC appeals within the next 17 days, the case could extend into 2025. Ripple’s business in the new jurisdictions it has established over the past four years may also see a negative impact. Only time will tell what new twist this case will take.
