SEC Secures Victory: Court Orders Ripple to Pay $1.95 Billion and Imposes Permanent Ban on Institutional Sales

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Ripple to Pay $1.95 Billion
SEC Scores a Victory, Ripple Receives Permanent Injunction
Ripple to Pay $1.95 Billion
Recently, Ripple executives confirmed that the SEC requested a $2 billion fine against Ripple from a New York judge. According to legal documents, the judge approved the SEC’s motion after fully considering the relevant opinions and issued the following orders in the final judgment:
Ripple must return $876,308,712, which represents the net profits from the violation of securities sales.
Under Section 20(d) of the Securities Act, Ripple is required to pay a civil penalty of $876,308,712.
Ripple is also required to pay pre-judgment interest of $198,150,940.
In total, Ripple must pay $1.95 billion.
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Contents of the Final Judgment
SEC Scores a Victory, Ripple Receives Permanent Injunction
Previous reports indicated that Ripple’s victory in 2023 did not mean that Ripple would walk away unscathed. At that time, the judge determined that Ripple’s coin sales to institutional investors (including institutional buyers, hedge funds, and ODL customers) constituted securities sales, which still awaited a final ruling (this year).
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The judgment further states that Ripple will be permanently prohibited from directly or indirectly engaging in the unregistered sale of securities to institutions, unless it possesses a valid registration statement. Otherwise, Ripple may not transport, sell, or deliver the securities (XRP) through any commercial instrument or means of communication.
Institutional sales have been one of Ripple’s sources of revenue, and this may have a negative impact on future financial statements.
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Ripple
SEC
XRP
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Further Reading
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Bitcoin Falls Below $70K! SEC Appeal Against Coinbase Could Affect Bitcoin ETF