U.S. District Judge Analisa Torres Has Imposed a $125 Million Fine on Ripple Labs for Violating Securities Laws

In a judgment delivered on Aug. 7, Judge Torres found that 1,278 institutional sales of Ripple (XRP) went against section 5 of the U.S. Securities Act.

A U.S. District Judge has slapped a $125 million fine on Ripple Labs for violating securities laws.

The fine stems from a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in December 2020, accusing Ripple of engaging in the unlawful offer of securities when it put XRP on sale.

In the lawsuit, the SEC claimed Ripple had raised more than $1.3 billion through the sale of XRP without first registering the token as a security, as required under U.S. federal law.

The SEC asked the court for $1 billion in disgorgement and $900 million in civil penalties against Ripple.

However, the penalty handed out by Judge Torres is more than 90% lower than what the SEC sought, a fact which has led Ripple CEO Brad Garlinghouse to describe the ruling as a “victory” for the company and the crypto industry as a whole.

Ripple’s chief legal officer Stuart Alderoty also took to Twitter to comment on the court’s decision. He noted that there had been no allegations of fraud or deliberate misconduct against Ripple, and that no financial harm as a result of the XRP sale was reported.

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