Although the amount of the penalty is very high, both the company and crypto enthusiasts celebrated it as a victory.“This is a victory for Ripple, the industry and the rule of law,” the CEO noted.
The price of Ripple (XRP) cryptocurrency experiences an increase in 22.5% after a federal judge in New York moved toward resolving a three-year securities lawsuit against Ripple Labs, which was celebrated by the company’s executives as a “victory” for the sector.
It so happens that on August 7, the federal judge ruled that Ripple Labs had to pay a fine of $125 million and established that the company was “permanently restricted and banned“of violating US securities laws in a case brought by the Securities and Exchange Commission (SEC). This decision appears to mark the conclusion of the litigation between Ripple and the SEC, which began in December 2020.
Following the news, the value of XRP skyrockets and reaches $0.61, allowing it to recover much of the losses accumulated in the recent fall of the cryptocurrency market, according to CoinMarketCap.
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Brad Garlinghouse, CEO of Ripple Labs, commented in a post on X shortly after the ruling: “This is a victory for Ripple, the industry, and the rule of law. The obstacles imposed by the Securities Commission against the XRP community have been dispelled..”
Ripple: the background of the litigation
Chris Larsen, co-founder of Ripple Labs, also expressed his satisfaction on X, stating: “The SEC’s aggressive campaign against us is over. We hope this puts an end to this Administration’s war on the cryptocurrency sector.”
On the other hand, some crypto commentators highlighted the impact on the price of XRP following the decision. Fred Rispoli, a cryptocurrency lawyer and founder of Hodl Law, noted: “Overall, a HUGE win for Ripple. While the $125 million hit is surprising, Ripple has gained more from the surge in XRP price over the past few minutes..”
The price increase surprised futures traders, who saw 40% more short positions liquidated than long positions in just four hours. Short positions worth $5.4 million were liquidated following the surge, and if the trend continues and the price hits $0.65, another $20 million in short positions could be liquidated, according to data from CoinGlass.
Source: Ambito
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