Judge Agrees To Delay $125,000,000 Penalty in SEC v. Ripple Lawsuit, Opening the Door to a Possible Appeal

A decide has agreed to delay enforcement of the $125 million civil penalty imposed on Ripple, opening the door to a doable enchantment within the funds firm’s long-running authorized battle with the U.S. Securities and Alternate Fee (SEC).

On Thursday, District Choose Analisa Torres ordered a keep of the financial portion of the case’s closing judgment after Ripple filed a request to which the SEC agreed.

The corporate’s $125 million nice was initially due on Friday, September 6, after Torres imposed it in an order final month.

As an alternative, Ripple will now deposit 111% of the nice ($138.75 million) into an interest-bearing account within the identify of the corporate’s legal professionals.

The corporate retains accrued curiosity and useful possession of the account, however has no management over the funds.

The account will likely be unlocked if the next courtroom overturns Torres’ ruling or if each events agree that the cash ought to go towards Ripple’s nice. Torres’ keep will final 30 days after the October enchantment deadline if neither Ripple nor the SEC enchantment, or 30 days after a call by the Courtroom of Appeals.

The SEC first sued the San Francisco-based funds firm in late 2020 for allegedly promoting XRP as an unregistered safety.

Final yr, Torres dominated that Ripple’s automated, open-market sale of XRP didn’t represent a safety providing, opposite to what the SEC claimed.

Nevertheless, the decide sided with the SEC’s competition that Ripple’s direct gross sales of XRP to institutional consumers have been securities choices.

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