Ripple, SEC Agree to Stay $125M Judgment, Hint at Possible Appeal
Date: 2024-09-05 Author: Oliver Abernathy Categories: BUSINESS
The legal team defending Ripple Labs in a case filed by the U.S. Securities and Exchange Commission (SEC) has requested a stay of execution of the monetary portion of the August 7 judgment that requires the company to pay $125 million.
In a filing on September 4 in the U.S. District Court for the Southern District of New York, Ripple's attorneys said the SEC agreed to the request to delay the payment beyond September 6. The lawyers proposed that Ripple deposit 111% of the award — roughly $139 million — in a bank account until 30 days “after the deadline for filing an appeal or for any appeal to be resolved.”
The announcement appeared to set the stage for a potential appeal by the SEC, even as Ripple executives praised the August 7 ruling. Ripple CEO Brad Garlinghouse called the ruling “a win for Ripple,” while General Counsel Stuart Alderoti said the company “is in compliance with the $125 million fine.”
Awaiting Court Approval
As of press time, Judge Analisa Torres, who is overseeing the SEC’s case against Ripple, had yet to approve the request. Any appeal would likely mean that Ripple’s case with the SEC is still pending, although it was filed in December 2020. Under court rules, 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 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 respect to programmatic sales on exchanges.
At press time, the price of XRP was $0.56, up about 0.15% over the past 30 days.
