Ripple Labs Wins SEC Lawsuit with Final Judgment in XRP Case

Ripple Labs has won a major victory in the ongoing XRP case against the US Securities and Exchange Commission (SEC).

The final judgment was handed down, marking a significant milestone in the long-running lawsuit.

Ripple Labs has been cleared of all charges related to the sale of XRP tokens.

This outcome is a significant relief for the company and its stakeholders, who have been waiting for a resolution for years.

The SEC vs. Ripple case has reached its final verdict, and the outcome is a significant win for Ripple Labs. Judge Analisa Torres delivered the ruling on August 7, 2022, after considering the SEC's motion for remedies and judgment on Ripple's violations of Section 5 of the US Securities Act.

The SEC sought injunction relief, disgorgement of ill-gotten profits, and civil penalties, but the court had other plans. Judge Torres granted the SEC's request for injunction relief, but denied their request for disgorgement and prejudgment interest.

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Here are the key rulings from the court:

Ripple was ordered to pay a penalty of $125,035,150 for selling unregistered XRP to institutional investors. This is a significantly lower amount than the SEC's proposed $876,308,712, and was based on a first-tier civil violation with no allegations of fraud, deceit, manipulation, or evidence of recklessness.

Ripple's CEO Brad Garlinghouse was thrilled with the verdict, stating that the Court reduced the SEC's demand by ~94%, from $2B to a more reasonable amount.

Ripple's Chief Legal Officer Stuart Alderoty emphasized that the case did not involve any allegations of fraud or intentional wrongdoing.

The Court's decision was a major victory for Ripple, as it rejected the SEC's absurd demand for $2B in fines and penalties.

Ripple will continue to grow its company with clarity, thanks to the Court's decision.

A $125M fine was imposed by the Court for certain historic sales to sophisticated third parties, a more nuanced approach than the SEC's initial demand.

Ripple's success in this case is a reminder that the rule of law matters, and the industry will benefit from this outcome.

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The SEC has several options to consider after the final verdict in the XRP case. They can appeal the Programmatic Sales and remedies-related rulings.

The SEC could appeal the Programmatic Sales ruling, which was rejected by Judge Torres in October 2023, allowing them to revisit this decision. They could also appeal the remedies-related rulings, including the denial of disgorgement and prejudgment interest.

Judge Torres' verdict was a significant blow to the SEC, who had sought a disgorgement of about $1.1 billion. Instead, they were granted only $125 million in civil penalties, a substantial reduction from their original proposal of $876 million.

The SEC may be hesitant to appeal, given the significant reduction in penalties imposed by Judge Torres. However, they could still choose to appeal, potentially leading to further delays and uncertainty for Ripple Labs.

Here's a summary of the SEC's options:

XRP rallied from a low of $0.4922 to a high of $0.6437 in response to the August 7 court verdict.

The rally was modest compared to the July 2023 reaction, when XRP surged from sub-$0.50 to a high of $0.9327 following the Programmatic Sales of XRP ruling.

Investors should remain alert, as appeals could adversely affect XRP price trends.

XRP surged by 18.28% on August 7, closing at $0.5998 after a 3.55% gain on August 6.

The total crypto market cap fell by 1.75% to $1.906 trillion on August 7, but XRP bucked the trend.

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Ripple's latest win in the XRP lawsuit marks a significant milestone in its battle with the SEC.

Ripple's leadership remains optimistic about the future, seeing these wins as a strong base for growth.

The faster judgment in the XRP lawsuit shows Ripple's progress and could influence other crypto-related cases.

Pro-XRP lawyer Jeremy Hogan has speculated that the SEC case might conclude by mid-2025, especially if leadership changes at the SEC.

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