- Judge Torres reduced the SEC’s initial $2 billion demand, limiting Ripple’s penalties.
- Ripple adapts XRP sales methods to comply with the court’s decision and avoid future violations.
The Ripple case against the SEC has seen recent developments that suggest future appeals. After Judge Torres ordered Ripple Labs to pay $125 million, instead of the $2 billion initially sought by the SEC, debates have arisen about potential appeals by both parties.
Judge Torres, of the Southern District of New York, delivered a mixed verdict. While Ripple Labs was fined $125 million, the court also granted an injunction that restricts Ripple from selling XRP to institutional investors and from engaging in On-Demand Liquidity (ODL) sales without proper registration.
Ripple’s executives, Brad Garlinghouse and Stuart Alderoty, expressed their satisfaction with the decision, indicating they would not appeal. Garlinghouse highlighted that the court reduced the SEC’s demand by around 94%, signaling a substantial victory for Ripple.
Despite this, some legal experts predict that both the SEC and Ripple might file appeals. According to former SEC lawyer Marc Fagel, the SEC has a 60-day window to file an appeal, which could occur after Ripple settles the penalties. The SEC might also delay its appeal until Ripple has paid the civil fines. If the SEC does appeal, the funds could be held until the appeal is resolved.
Ripple’s attorney, Fred Rispoli, noted that Ripple would only appeal if the SEC initiates an appeal first. Meanwhile, attorney Jeremy Hogan explained that Ripple’s ODL sales could continue outside U.S. jurisdiction and are not covered by the current injunction.
Ripple has adapted its XRP sales strategy to comply with the judgment, arguing that XRP, when held briefly, does not create an expectation of profits.
