Main Points:
- Ripple has requested to delay the $125 million payment ordered in the August 7 ruling.
- SEC might appeal, prompting Ripple to take precautionary measures.
- Ripple proposes depositing 111% of the ruling amount in escrow until the appeal is resolved.
- The SEC has agreed to delay the payment request until September 6.
- Ripple CEO and legal team view the ruling as a victory despite potential ongoing legal challenges.
- The court has not yet ruled on Ripple’s request for the payment delay.
- The lawsuit began in December 2020, accusing Ripple of selling XRP as unregistered securities.
- Judge Torres ruled in July 2023 that XRP tokens sold to individual investors were not securities.
Ripple Requests $125 Million Payment Stay Amid SEC Appeal Rumors
Ripple Labs, the company behind the cryptocurrency XRP, has taken steps to delay a court-ordered payment of $125 million. This move follows an August 7 ruling where Ripple was ordered to pay the hefty fine as part of its long-standing legal battle with the U.S. Securities and Exchange Commission (SEC). Despite this financial penalty, the ruling was seen as a partial victory for Ripple, as the SEC had originally sought $2 billion. However, the possibility of an SEC appeal has prompted Ripple to act strategically, asking for the payment delay while the case remains unsettled.
SEC Agrees to Delay Payment Request
Ripple’s legal team filed a request on September 4 in the Southern District Court of New York to delay the payment until after September 6, citing the likelihood of the SEC filing an appeal. According to the court document, the SEC has agreed to this postponement. In a proactive move, Ripple has also proposed placing 111% of the ruling amount—around $139 million—into an escrow account, to be held until either the deadline for the SEC’s appeal passes or the appeal itself is resolved.
Ripple’s Legal Strategy: A Defensive Move Against Potential Appeal
Ripple’s CEO, Brad Garlinghouse, has consistently framed the August 7 ruling as a victory for the company, while the firm’s Chief Legal Officer, Stuart Alderoty, has stated that Ripple will comply with the imposed fine. However, the legal team’s latest filing shows that Ripple is preparing for the possibility of continued legal battles if the SEC chooses to appeal. The proposal to hold the $139 million in escrow is a defensive move that aims to protect Ripple’s assets while the case drags on.
The Ongoing Ripple vs. SEC Battle: A Case Far From Over
At the time of writing, Judge Analisa Torres, who has presided over the SEC vs. Ripple lawsuit, has not yet ruled on Ripple’s request to delay the payment. If the SEC does file an appeal, it could prolong the case, which began in December 2020. According to court guidelines, federal agencies like the SEC have 60 days to file an appeal after a ruling is made. The SEC’s lawsuit accuses Ripple of using XRP as an unregistered security to raise capital, initially targeting Garlinghouse and Ripple’s Executive Chairman Chris Larsen.
Ripple’s July 2023 Victory: A Turning Point?
In a crucial decision made in July 2023, Judge Torres ruled that XRP tokens sold on exchanges to individual investors did not constitute securities, marking a significant win for Ripple. This ruling could set a precedent for other cryptocurrency-related legal cases and has broad implications for how digital assets are regulated in the U.S. While the company has celebrated this partial victory, the potential for an appeal by the SEC still looms large, leaving Ripple’s legal status in a state of uncertainty.
Implications for the Crypto Market and Blockchain Applications
Ripple’s ongoing legal challenges with the SEC continue to captivate the attention of cryptocurrency traders, investors, and blockchain enthusiasts. The outcome of this case could influence the regulatory landscape for digital assets in the U.S. and beyond. If the SEC’s appeal moves forward, it will be critical for blockchain companies to monitor how regulatory authorities define digital tokens as securities. Ripple’s proactive steps in managing its legal exposure may serve as a guide for other firms navigating similar issues.
Ripple’s request to delay the $125 million payment highlights its strategic approach to managing the prolonged legal battle with the SEC. With the SEC potentially filing an appeal, Ripple is taking precautionary measures by proposing to place $139 million in escrow while awaiting further legal developments. The July 2023 ruling, which determined that XRP tokens sold to individual investors were not securities, marked a significant moment for Ripple. However, the case is far from over, and the cryptocurrency industry will be watching closely as events unfold.
