XRP surged by 26% after a New York federal judge made a pivotal move in the ongoing securities lawsuit against Ripple Labs.
After the announcement, XRP surged to $0.63, reclaiming much of its recent losses from the crypto crash. Currently, XRP is trading at $0.61, marking a gain of over 20% in the last 24 hours.
Judge’s Decision:
On August 7, the judge ordered Ripple Labs to pay a $125 million civil penalty and prohibited the company from violating U.S. securities laws, reported CoinMarketcap. This ruling marks a crucial step toward concluding the case initiated by the Securities and Exchange Commission (SEC) in December 2020.
Ripple Labs CEO Brad Garlinghouse hailed the ruling as a victory for Ripple, the industry, and the rule of law. He emphasized that the SEC’s challenges against the XRP community had ended. Co-founder Chris Larsen hoped this decision would signal the conclusion of the SEC’s “unhinged campaign” against XRP and the broader crypto space.
He tweeted, “The SEC asked for $2B, and the Court reduced their demand by ~94%, recognizing that they had overplayed their hand. We respect the Court’s decision and have the clarity to continue growing our company. This is a victory for Ripple, the industry, and the rule of law. The SEC’s headwinds against the whole XRP community are gone.”
The SEC asked for $2B, and the Court reduced their demand by ~94% recognizing that they had overplayed their hand. We respect the Court’s decision and have clarity to continue growing our company.
This is a victory for Ripple, the industry and the rule of law. The SEC’s…
— Brad Garlinghouse (@bgarlinghouse) August 7, 2024
Market Reaction:
Following the announcement, XRP rallied to $0.63, recovering much of its losses from the recent crypto crash. XRP is trading at $0.61, gaining over 20% in the past 24 hours.
CEO’s Response: Ripple Labs CEO Brad Garlinghouse celebrated the ruling, calling it a victory for Ripple, the industry, and the rule of law. He emphasized that the SEC’s challenges against the XRP community were over.
Co-founder Chris Larsen hoped this decision would end the SEC’s “unhinged campaign” against XRP and the “war on crypto.”
The SEC's unhinged campaign against us is finally over. Let’s all hope this ends this Administration’s war on crypto. https://t.co/XEjXKRoPFy
— Chris Larsen (@chrislarsensf) August 7, 2024
Futures Traders Caught Off Guard:
The price surge surprised futures traders, liquidating 40% more short positions than long ones within four hours. If XRP reaches $0.65, another $20 million in short positions could face liquidation.
This ruling brings XRP closer to a resolution in the legal battle, and the crypto community is closely watching the implications for the broader market23. Stay tuned for further updates!
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