US Judge Imposes US$125 Million Fine On Ripple

A US Federal judge hit the crypto institution, Ripple, and owner of the cryptocurrency XRP, with a fine totalling US$125 million (~RM559 million) after it was found to have violated federal securities laws. Adding on to the fine, the company has also been served an injunction against future securities violations.

To break it down, 1,278 institutional sale transactions by Ripple were found to violated securities laws. On a related note, the fine imposed is well below the US$1 billion in disgorgement and prejudgment interest and US$900 million in civil penalties that the US Securities and Exchange Commissions (SEC) were initially seeking. To make matters slightly more exciting, the SEC also tried to appeal the portion of the judge’s ruling while the case was ongoing, but was unsuccessful.

“Rather, the Court finds that Ripple’s willingness to push the boundaries of the Order evinces a likelihood that it will eventually (if it has not already) cross the line,” the judge said while rendering judgment. “On balance, the Court finds that there is a reasonable probability of future violations, meriting the issuance of an injunction.”

(Source: Coindesk)