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Judge Torres Issues Order In Ripple Vs SEC Case

Published

2 months ago

September 5, 2024

Ripple SEC Case: New York District Court Judge Torres has approved a proposed order by Ripple to hold a $125 million penalty as the US Securities and Exchange Commission (SEC) mulls appeal. The move comes as the company remains uncertain about paying the penalty as the SEC hints at the potential appeal of rulings in XRP lawsuit.

Ripple SEC Case On Track Towards Appeal

In the latest development in US SEC v. Ripple Labs case, the SDNY Court granted an order on Ripple’s request for a stay on paying the government agency $125 million. Judge Torres approved that the fund will remain in a trust to allow more time for either party to appeal the landmark ruling.

The parties reached an agreement to keep 111% of the judgment amount in a bank account managed by a law firm. The stay in the Ripple SEC case will last until 30 days after the time to appeal expires or the resolution of any appeal in Ripple SEC lawsuit. The post-judgment interest to accrue will be in the SEC’s favor as set forth in the judgment.

Ripple executives including CEO Brad Garlinghouse earlier denied any intention to file an appeal, but ex-SEC lawyers cleared that the company must file a cross-appeal. If Ripple Labs does not cross-appeal in the Ripple SEC case, it is admitting that it owes $125 million.

Lawyers Say Appeal Will Have Not Impact on XRP Price

Pro-XRP lawyer Fred Rispoli in a post on September 5 said a ruling on SEC appeal is unlikely until 2026. He claims that the SEC suing crypto exchanges and alleging multiple tokens as securities has weakened its case. In addition, Rispoli believes the SEC can even withdraw its appeal at any time, with 80% odds that the appeal would be dropped if “crypto mom” Hester Pierce becomes Chair.

“If they appeal, I’m certain it’s on the programmatic sales ruling. They might throw in disgorgement – but since that’s based on 2nd Circuit precedent, I don’t see them getting that part of the ruling disturbed. Better to fight that in another court & try for a circuit split,” former SEC lawyer Marc Fagel said.

While the SEC is still deliberating on filing an appeal, the potential filing this month will set the Ripple SEC lawsuit on another fight in the Second Circuit Court of Appeals.

XRP price lost all gains it recorded in the past 24 hours, with the price currently trading at $0.55. The 24-hour low and high are $0.548 and $0.564, respectively. Furthermore, the trading volume has decreased by 15% in the last 24 hours, indicating a decline in interest among traders.

Interest from derivatives traders also dropped, with XRP futures open interest 0.67% down today. The total XRP futures OI is currently 1.08 billion worth $593.51 million, as per Coinglass data.