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Ripple and SEC agree to delay $125 million judgment

Ripple and SEC agree to delay $125 million judgment

GrafaGrafa2024/09/05 01:25
By:Mahathir Bayena

Ripple Labs (CRYPTO:XRP) and the U.S. Securities and Exchange Commission (SEC) have agreed to delay a $125 million judgment in the ongoing legal battle between the two parties. 

This move, outlined in a September 4 filing in the U.S. District Court for the Southern District of New York, hints at a potential appeal by the SEC against the August 7 decision. 

Ripple's legal team requested that 111% of the judgment amount, approximately $139 million, be placed in a bank account until 30 days after the deadline to appeal expires or any appeal is resolved. 

The agreement to stay the payment after September 6 suggests that both parties are preparing for further legal proceedings. 

This development follows a significant ruling on August 7, which Ripple CEO Brad Garlinghouse described as a "victory for Ripple." 

Ripple's Chief Legal Officer Stuart Alderoty also stated that the company would respect the $125 million fine imposed by the court. 

As of now, Judge Analisa Torres, who is overseeing the case, has not yet approved the request to delay the payment. 

If the request is granted, it would indicate that the SEC's case against Ripple, initiated in December 2020, is far from over. 

According to court guidelines, either party has 60 days to file an appeal if the United States or a government agency is involved in the lawsuit. 

The SEC's original complaint accused Ripple of using XRP as an unregistered security to raise funds, targeting Ripple executives Brad Garlinghouse and Chris Larsen. 

However, in July 2023, Judge Torres ruled that XRP was not a security concerning programmatic sales on exchanges, providing a partial win for Ripple. 

Yet, with the possibility of an appeal still looming, the legal battle between Ripple and the SEC could continue to shape the future regulatory landscape for cryptocurrencies in the United States.

At the time of reporting, the XRP price was $0.5588.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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