Ripple Labs has sought a 120-day stay on the $125 million penalty ordered by the U.S. Securities and Exchange Commission (SEC). This is part of the long-standing litigation between the SEC and Ripple, in which Ripple was accused of selling XRP tokens illegally.
Ripple’s Letter to Court
According to a crypto analyst post on their X profile, Ripple will place the $125 million in escrow. The legal team of Ripple submitted the letter for a temporary stay with the Court on Wednesday. It proposes to place about 111% of the fine, approximately $139 million, in a bank account. The funds would remain there until a month (30 days) after the appeal window closes or until the resolution of any appeal.
Penalty Slashed from $2B to $125M
Ripple was alleged to have conducted unregistered securities sales through its XRP token. The company described this judgment as a partial victory, as the SEC’s original demands sought much higher penalties. Initially, the SEC sought $2 billion as a penalty fine; however, the Court slashed the penalty to $125 million. Currently, Ripple is in the process of enhancing its legal actions to handle further cases.
SEC Approves Ripple’s Plea
The SEC has approved Ripple's request for a temporary stay on the Court order fine. However, the decision is still pending in Court. Judge Analisa Torres, who presided over the earlier stages of the lawsuit, has yet to approve Ripple’s request.
The decision on the temporary stay of Ripple’s penalty payment is still pending. Judge Analisa Torres has yet to approve the company’s request, and further developments will unfold in the courtroom.
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