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Ripple to Pay $1.95 Billion
SEC scores a victory, Ripple hit with permanent injunction
Ripple to Pay $1.95 Billion
Recently, Ripple executives confirmed that the SEC requested a New York judge to impose a $2 billion fine on Ripple. According to legal documents, after fully hearing relevant opinions, the judge approved the SEC’s motion and issued the following orders in the final judgment:
Ripple is required to return $876,308,712, which represents the net profit from the violation of securities sales.
According to Section 20(d) of the Securities Act, Ripple must 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.
Contents of the Final Judgment
SEC scores a victory, Ripple hit with permanent injunction
Previous reports indicated that the victory in 2023 did not mean Ripple would walk away unscathed. At that time, the judge determined that Ripple’s sale of coins to institutional investors (including institutional buyers, hedge funds, and ODL clients) 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 sale of unregistered securities to institutions unless it has 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 always been one of Ripple’s sources of revenue, and this may have a negative impact on future financial statements.
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Ripple Labs: Plans to repurchase $285 million in stock, still no plans to go public in the United States
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Ripple
SEC
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Further Reading
Why the SEC Lawsuit Against Coinbase Will Determine the End or Beginning of This Year’s Bull Market?
Bitcoin Falls Below $70K! SEC Can Appeal Against Coinbase, Bitcoin ETF May Be Affected.