Ripple Labs Requests to Stay Monetary Portion of $125M Judgment from SEC Case

The legal team defending Ripple Labs against a case filed by the United States Securities and Exchange Commission has requested to stay the monetary portion of an Aug. 7 judgment requiring the firm to pay $125 million.

Lawyers for Ripple Labs Inc defending the firm against a US Securities and Exchange Commission lawsuit have asked a court to pause the monetary portion of an Aug. 7 judgment that ordered the company to pay $125 million.

Ripple’s lawyers said in a Sept. 4 filing in the US District Court for the Southern District of New York that the SEC had agreed to a request to delay the payment of the judgment after Sept. 6. The lawyers suggested that Ripple be permitted to deposit 111% of the judgment amount — roughly $139 million — in a bank account until 30 days “after the time to appeal expires or the resolution of any appeal.”

The filing appeared to be setting the stage for a potential SEC appeal, as Ripple executives praised the Aug. 7 judgment. Ripple CEO Brad Garlinghouse called the decision a “victory for Ripple,” and chief legal officer Stuart Alderoty said the company would “respect the $125 million fine.”

Pending court approval

Judge Analisa Torres, who is presiding over the SEC v. Ripple case, had not signed off on the request as of the time of this report. Any appeal would likely indicate that Ripple’s case with the SEC is not yet fully resolved after it was first filed in December 2020. Court guidelines state that either party has 60 days to file an appeal “if the United States or an officer or agency of the United States is a party.”

The SEC complaint alleged that Ripple used XRP XRP $0.56 as an unregistered security to raise funds, initially targeting Garlinghouse and Ripple executive chairman Chris Larsen. In July 2023, Judge Torres ruled that the XRP token was not a security with regard to programmatic sales on exchanges.

XRP

$0.56

The price of XRP was $0.56 at the time of this writing, having risen roughly 0.15% in the last 30 days.

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