XRP News Today: Ripple Fined $125 Million as Judge Denies 60% Reduction

Judge Analisa Torres of the Southern District of New York has denied a joint request by the U.S. Securities and Exchange Commission (SEC) and Ripple to lift a permanent injunction in their dispute. This decision prevents Ripple from significantly reducing its $125 million fine. Judge Torres cited the SEC’s past view that Ripple would continue to violate the law, a stance that neither party has contested. Despite this, both parties had requested a 60% reduction in the fine and the lifting of the permanent injunction, citing public interest. The judge, however, maintained that extraordinary circumstances must be demonstrated to alter a court's decision, which was not the case here.

The dispute between the SEC and Ripple began in 2020, when the SEC accused Ripple of raising $1.3 billion through unregistered securities sales. In July 2023, Judge Torres ruled that "programmatic sales" of XRP to individual investors were not securities, but direct sales to institutional investors were. This ruling led to a $125 million fine for Ripple. The final stages of the case have focused on reassessing the penalty amount, with both parties arguing for a reduction based on the SEC’s shift in approach to crypto assets following the departure of former Chairman Gary Gensler.

The SEC has not commented on the recent ruling, but Ripple Legal Director Stuart Alderoty released a statement on the social media platform X. Alderoty stated, “The ball is now in our court.” He explained that the court has given Ripple two options: to withdraw their appeal regarding past institutional sales or to continue the appeal. Alderoty emphasized that the decision that XRP is not a security remains unchanged.

This ruling marks a pivotal moment in the Ripple-SEC case, as it solidifies the legal precedent set by Judge Torres’ earlier decision. The denial of the joint request to lift the injunction suggests that the court is taking a firm stance on the enforcement of securities laws in the cryptocurrency space. Ripple now faces a critical decision on how to proceed with their appeal, which could have far-reaching implications for the broader cryptocurrency industry.