Ripple has been ordered by a US judge to pay a $125 million fine to the Securities and Exchange Commission for unlawfully selling its XRP token to institutional investors.
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Despite the penalty, CEO Brad Garlinghouse claimed the ruling was a victory for Ripple, noting that the SEC had sought $2 billion in penalties.
The SEC filed suit against Ripple, Garlinghouse and co-founder Christian Larsen in 2020, claiming they “raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.”
Last year, in what was widely seen as a major victory for the cryptocurrency industry, U.S. District Judge Analisa Torres ruled that Ripple did not violate federal securities laws by selling the XRP token on public exchanges and using algorithms.
However, Torres also ruled that institutional sales of XRP violated federal securities law, resulting in a $125 million fine.
In a post on
“This is a victory for Ripple, the industry and the rule of law. The SEC’s backlash against the entire XRP community has disappeared.”