XRP Surges 20% as Prolonged Ripple-SEC Case Concludes

A judge in Manhattan has ordered a cryptocurrency firm to pay around $125 million in penalties to the U.S. Securities and Exchange Commission (SEC) over allegations of improperly selling the cryptocurrency XRP, according to a court document.

This penalty is notably lower than the $2 billion originally sought by U.S. regulators during the lengthy legal dispute involving the company.

Following the announcement, the price of the XRP token rose approximately 20% to $0.6165.

The SEC had initiated a lawsuit against Ripple, along with its CEO Brad Garlinghouse and co-founder Chris Larsen, in 2020. The lawsuit claimed that they had illegally raised over $1.3 billion through an unregistered securities offering involving the sale of XRP. However, in October, the SEC dropped its remaining claims against Garlinghouse and Larsen. This case has garnered considerable attention as one of the largest legal actions taken by the SEC within the cryptocurrency industry.

Ripple’s CEO, Brad Garlinghouse, expressed his respect for the court’s decision and noted that it provides clarity for the company’s growth. He highlighted that the court had reduced the SEC’s demands by roughly 94%, indicating that the SEC had overreached. Garlinghouse characterized the outcome as a “victory for Ripple, the industry, and the rule of law,” and stated that the SEC’s challenges against the entire XRP community have been lifted.

In her ruling, U.S. District Judge Analisa Torres pointed out that the case did not involve any allegations of fraud.

Despite the recent surge in value, the XRP token has remained relatively stagnant this year. The ruling has emerged at a time when digital currencies have generally lost value amid global market cautiousness.

Judge Torres had previously ruled that XRP is subject to securities law only when sold to institutional investors, a decision that was viewed as a significant win for the industry. The SEC continues to pursue several notable cases against cryptocurrency exchanges and issuers, accusing them of offering unregistered securities.