Ripple Faces Legal Setback as Court Rejects Bid to Ease Penalties

Ripple has been dealt another legal blow after a federal judge rejected its attempt to ease court-imposed restrictions and penalties stemming from its long-standing battle with the U.S. Securities and Exchange Commission (SEC).

Judge Analisa Torres of the Southern District of New York declined a joint request from Ripple and the SEC that sought to revise key aspects of a prior judgment. The two sides had petitioned the court to lift an existing injunction and significantly reduce Ripple’s $125 million penalty. However, the judge remained unconvinced.

In her ruling, Judge Torres highlighted that the legal precedents cited by both parties failed to support the changes they requested. Specifically, she pointed out that those cases did not include similar penalties or injunctions, nor did they result in findings of securities law violations.

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She also noted that the need to dissolve the injunction stemmed from the parties’ own mutual agreement during the appeals process—not from any legal necessity.

Back in 2023, Ripple was found to have breached federal securities law by offering XRP to institutional investors without registering the token as a security. The ruling culminated in a final judgment in August 2024, which included both the financial penalty and a permanent injunction prohibiting Ripple from repeating similar violations.

The latest decision leaves those penalties intact, marking a setback for Ripple as it continues to navigate the regulatory landscape.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.