Ripple was fined just $125 million for institutional sales, and crypto exchange transactions were deemed legal.
Judge Torres ended a nearly four-year legal battle with the SEC by ordering Ripple to pay a $125 million civil penalty and halt further violations of securities laws.
The SEC had initially requested a $2 billion penalty from Ripple.
In addition to the financial penalty, Judge Torres issued an injunction prohibiting Ripple from violating federal securities laws in the future. Although there was no judgment that Ripple violated any laws following the SEC's lawsuit, he emphasized that the risk of the company “crossing the line” in the future is significant.
“Rather, the Court finds that Ripple's willingness to push the limits of the Order indicates the likelihood that it will eventually (if it has not already) cross the line,” Judge Torres said. “Consequently, the Court finds that the likelihood of future violations is not a reasonable possibility to warrant injunctive relief.” “He decided it was a possibility.”
The SEC is expected to appeal the July 2023 decision as the penalty was imposed. This comes after the SEC was denied a temporary appeal by the same judge last year.
Additionally, the SEC and Ripple reached a settlement regarding the accusations against CEO Brad Garlinghouse and other executives after the appeal was rejected.
