Ripple’s civil case with the SEC has been ongoing since December 2020, when the regulator alleged the blockchain firm used XRP as an unregistered security to raise funds.
A federal judge has ordered Ripple Labs to pay a $125 million civil penalty and said the firm was “permanently restrained and enjoined” from violating United States securities laws as part of a case brought by the Securities and Exchange Commission.
In an Aug. 7 filing in the US District Court for the Southern District of New York, Judge Analisa Torres found Ripple liable for more than $125 million, which it was expected to pay to the SEC within 30 days. The judgment came following competing motions between Ripple and the financial regulator, which argued that the firm should pay a maximum civil penalty of $10 million or $2 billion, respectively.
“Based on the Court’s independent analysis of Ripple’s expert report summarizing the relevant contracts [...] the Court finds that 1,278 transactions violated Section 5, resulting in a civil penalty of $125,035,150,” said the filing.
