BREAKING: XRP Price Rallies 27% As Ripple Secures Major Win In SEC Lawsuit

In just one hour, the XRP price rallied 27% to a one-week high of $0.6406 on Wednesday after Judge Analisa Torres ordered Ripple Labs to pay only $125 million of the $2 billion fine sought by the US Securities and Exchange Commission (SEC) against the blockchain payments company after a four-year legal battle. 

Ripple’s Legal Victory

However, the Court differentiated Ripple’s Programmatic Sales and Other Distributions, finding that they did not fall into this category. Additionally, the Court clarified that the individual sales conducted by Ripple co-founders Chris Larsen and Brad Garlinghouse did not qualify as offers or sales of investment contracts for reasons akin to those outlined for Ripple’s Programmatic Sales.

When deliberating on the penalty, the Court concluded that a first-tier penalty was fitting in this instance, noting the absence of allegations related to fraud, deceit, or manipulation, along with the lack of established deliberate or reckless disregard for regulatory requirements. 

Moreover, the Court noted that the SEC had not proven that Ripple’s failure to register the Institutional Sales resulted in significant losses or risks to investors. 

Consequently, the SEC’s motion for remedies and the entry of final judgment were partially granted and partially denied. The Court’s decision mandates an injunction against Ripple to prevent future securities law violations and imposes a civil penalty amounting exactly to $125,035,150.

XRP Price Predictions Point To Mega Bull Run

With XRP not considered a security by the court, the token’s price saw one of its best rallies of the year in a matter of hours, surpassing Monday’s pre-market crash price resulting from global economic uncertainty. 

Featured image from DALL-E, chart from TradingView.com