The legal team representing Ripple Labs in an action brought by the US Securities and Exchange Commission (SEC) has asked to hold the financial part of a ruling from August 7th, which called for the company to pay $125 million.
Request for Postponement
According to a filing made by Ripple’s attorneys on September 4, the SEC has granted a request to postpone paying the judgment until after September 6. The legal team suggested that Ripple deposit $139 million, or 111% of the judgment sum, into a bank account for 30 days.
Statements from Ripple Executives
Initially, executives at Ripple lauded the Aug. 7 ruling. CEO Brad Garlinghouse hailed the ruling as a 'victory for Ripple,' and Chief Legal Officer Stuart Alderoty stated the company would 'respect the $125 million fine.'
Context of the Legal Case
However, the penalty is pending court approval. Judge Analisa Torres, who is in charge of the SEC v. Ripple case, had not approved the request. This is because Ripple’s SEC complaint, initially filed in December 2020, would still be pending in the event of an appeal. Each party has sixty days to submit an appeal according to the court’s guidelines. According to the SEC complaint, Ripple allegedly used XRP as an unregistered security to generate funds. Judge Torres declared in July 2023 that XRP tokens sold through programmatic exchanges were not securities. Currently, XRP is trading at $0.56, up about 0.15% over the previous thirty days.
Thus, the decision regarding the penalty for Ripple remains pending in court while the company takes steps to ensure financial security.
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