Judge Rejects Crucial Motion Benefiting Ripple Firm
Read U.TODAY on Google News * Judge Turns a Deaf Ear to Ripple's Appeal* What's the Deal Now?
In a jaw-dropping decision, Judge Analisa Torres of the U.S. District Court for the Southern District of New York squashed a pivotal motion filed by Ripple and the Securities and Exchange Commission (SEC) for a preliminary ruling.
As reported by U.Today, these parties previously requested Judge Torres to lift the permanent injunction barring Ripple and slash the $125 million fine to a more lenient $50 million.
Ripple and the SEC's appeal was based on a settlement agreement and the invocation of Rule 60(b), which enables a court to excuse a party from a final judgment under exceptional circumstances.
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However, Judge Torres expressed her unconvinced stance regarding the arguments in favor of adjusting the final judgment, underlining the fact that court rulings exist for public good and not just to appease the litigants.
Reasons behind the setback
The judge's ruling highlights that it's extremely rare for court rulings to be reversed. Modifying the final judgment would only be permissible in extraordinary situations.
Clarifying the Air: Once and for All on Ripple v. SEC Final Judgement Delay Gamza KhanzadaevThe judge pointed out the SEC's strong stance on the need for stringent penalties against Ripple due to its prolonged and egregious violations in the crypto space, which exceeded a span of eight years. The agency previously warned of ongoing legal violations by Ripple and the judge reminded the court of this statement in her ruling.
“None of this has changed, and the parties hardly claim otherwise. Yet, they now argue that it's in the public interest to cut the Civil Penalty by sixty percent and vacate the permanent injunction that was enforced less than a year ago,” Judge Torres stated.
In the eyes of the judge, Ripple attempted to use the SEC's recent pro-crypto sentiment as leverage in their appeal. They argued that such flexibility would level the playing field given that the agency had dropped numerous other crypto cases against prominent firms like Coinbase and Kraken following the departure of former SEC head Gary Gensler. However, the judge took note of the fact that none of these dropped cases involved injunctions or penalties.
The ruling noted that dissolving the injunction could only be necessary since the parties made it a prerequisite for terminating their appeals in their Agreement.
Judge Torres expressed concerns about the integrity of final judgments to justify the ruling.
Back in 2023, the court concluded that the San Francisco-based company breached securities laws when selling XRP to institutional investors without proper registration.
In August of 2024, the court brought forth its final judgment, imposing a $125 million fine and a permanent injunction on Ripple from selling XRP to institutional clients in the U.S.
The SEC and Ripple then lodged their appeal and cross-appeal, respectively, in October before they settled their dispute early this year following Gensler's departure.
So, what's next?
As reported by U.TODAY, lawyer Bill Morgan divulged that the previously dismissed motion was crucial, and the denial could stretch out the appeals process.
Recently, however, Morgan hinted that it would be more sensible for Ripple to accept the penalty and the permanent injunction.
At press time, XRP is witnessing a 1.6% drop in 24 hours.
#Ripple on the Ropes#XRP Taking a Hit
- Despite Ripple's efforts to appeal a more lenient ruling in their ongoing legal dispute with the SEC, Judge Torres maintained her stance, citing the rarity of court rulings being reversed.
- In the world of finance and business, crypto continues to be a significant aspect, with Judge Torres' recent decision potentially affecting the future of Ripple's dealings in the crypto space.
