Ripple Labs ordered to pay $125 million in SEC penalties
The case is significant as one of the largest enforcement actions in the cryptocurrency sector by the SEC.
A Manhattan court has ordered Ripple Labs to pay approximately $125 million in penalties to the US Securities and Exchange Commission (SEC) over the improper sale of the cryptocurrency XRP. The ruling comes as part of a broader legal battle that began in 2020 when the SEC accused Ripple and its CEO Brad Garlinghouse and co-founder Chris Larsen of illegally raising over $1.3 billion through an unregistered securities offering by selling XRP.
Initially, the SEC sought $2 billion in fines and penalties from Ripple. However, the court’s decision to impose a $125 million penalty represents only a tiny fraction of that amount. The SEC dropped its remaining claims against Garlinghouse and Larsen in October, making this case one of the most important legal challenges the cryptocurrency industry has faced.
In response to the ruling, Ripple CEO Brad Garlinghouse expressed respect for the court’s decision and noted that it provides the company with the clarity needed to continue its growth. The SEC, meanwhile, reiterated its stance that securities laws apply to firms offering and selling investment contracts, regardless of the technology or labels involved.
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