Judge Fines Ripple $125M, Bans Future Securities Law Violations in Long-Running SEC Case

As a seasoned crypto investor with a decade of experience under my belt, I’ve seen my fair share of ups and downs, twists and turns in this ever-evolving market. The recent ruling against Ripple by District Judge Analisa Torres has certainly stirred the pot once again.

On Wednesday, a federal judge mandated that Ripple should compensate $125 million as a penalty for civil infractions and also prohibited them from breaching securities laws again in the future.

Judge Analisa Torres from the Southern District of New York has levied a fine, amounting to $125.035 million, on Ripple due to her ruling that 1,278 institutional sales transactions by the company breached securities law. However, this penalty is significantly lower than the $1 billion in disgorgement and prejudgment interest, as well as the $900 million in civil penalties that the Securities and Exchange Commission (SEC) had initially requested.

The SEC tried unsuccessfully to appeal that portion of the ruling while the case was ongoing.

On Wednesday, Judge Torres issued an order preventing Ripple from further breaches of federal securities regulations. Although she hasn’t yet ruled whether Ripple has broken any laws following the SEC’s lawsuit, the judge implied that Ripple could potentially step over legal boundaries.

Instead of her original statement, “The judge implied that Ripple’s tendency to test the boundaries of the order suggests they might soon (or already have) overstep the mark. In summary, the court believes there is a strong possibility of future infractions, which warrants the granting of an injunction.”

According to the directive outlined in the official document, Ripple must submit a registration form if they plan to offer any securities for sale.

It seems that the Securities and Exchange Commission (SEC) might decide to challenge the judgment issued in July 2023 following the imposition of a sentence, as this is now possible since the same judge rejected the SEC’s request for an immediate appeal last year.

After the denial of their interlocutory appeal, Ripple and its executive team, including Brad Garlinghouse, reached a settlement with the SEC regarding the charges brought against them.