On Wednesday, the SEC created a new twist in its standoff with Ripple (XRP) by appealing the judgment rendered in August. However, Ripple was fined $125 million.
SEC appeals against Ripple (XRP)
Last August, Judge Analisa Torres fined Ripple (XRP) $125 million in its dispute with the Securities and Exchange Commission (SEC). Despite this large amount, the company considered this a victory, given that the Commission originally requested $2 billion.
💡 What is Ripple (XRP)?
After a year earlier, Judge Analisa Torres also refused to recognize the sale of XRP on the secondary market as an unregistered security sale, this constituted a second disappointment for the SEC in this standoff. Thus, it is in this context that the SEC appealed on Wednesday the decision of August 7:
Please be advised that Plaintiff, the Securities and Exchange Commission, hereby respectfully appeals to the United States Court of Appeals for the Second Circuit the final judgment entered by this Court on August 7, 2024.
From now on, this amount of $125 million fine for Ripple is therefore on hold, pending a new judgment.
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Ripple CEO and Legal Officer React
After this choice of the SEC, Brad Garlinghouse, the CEO of Ripple, as well as Stuart Alderoty, its legal manager, reacted on X.
For his part, Stuart Alderoty calls the decision disappointing, but not surprising. He thus accuses the government agency of waging a litigation war against the industry and points to the resignation of Gurbir S. Grewal, the director of the SEC's Enforcement Division an hour earlier, which he ironically describes it as a coincidence:
(1) The SEC's decision to appeal is disappointing, but not surprising. This just prolongs what's already a complete embarrassment for the agency. The Court already rejected the SEC's suggestion that Ripple acted recklessly, and there were no allegations of fraud and, of course,… https://t.co/PQozMMtthf
— Stuart Alderoty (@s_alderoty) October 2, 2024
For his part, Brad Garlinghouse indicates that Ripple will fight in court for as long as necessaryalso denouncing the attitude of the SEC and its president Gary Gensler:
If Gensler and the SEC had been rational, they would have dropped this case long ago. It certainly did not protect investors and instead damaged the credibility and reputation of the SEC. Somehow, they still haven't gotten the message: they've lost on everything that matters. Ripple, the cryptocurrency industry and the rule of law have already prevailed.
👉 Also in the news — Top start for spot XRP ETFs? Bitwise Files SEC Application for Ripple Asset
In parallel with this event, XRP fell by 11.18% during the last 24 hours and is trading at $0.53 at the time of writing, for a capitalization of $30.14 billion.
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Sources: SEC, X
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Since 2021, I have devoted my free time to seriously educating myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyzes on Web3 themes to offer exclusive content to Cryptoast readers.
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