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Ripple ordered to pay $125 million in penalty for improperly selling XRP tokens

Economic Times · 8m

Ripple Labs has been ordered by a Manhattan court judge to pay $125 million in penalties to the U.S. Securities and Exchange Commission (SEC) for improperly selling XRP cryptocurrency. The SEC had sought fines and penalties totaling $2 billion, but this decision only covers a fraction of that amount. The SEC had previously filed a lawsuit against Ripple, its CEO, and co-founder, accusing them of illegally raising over $1.3 billion through an unregistered securities offering. The ruling is significant as it is one of the largest cases brought by the SEC in the cryptocurrency industry. Ripple CEO Brad Garlinghouse respects the court's decision while the SEC sees it as a reaffirmation of securities laws.