A U.S. judge imposes a $125 million fine on Ripple, prohibiting it from future violations of securities laws

ChainCatcher news, according to CoinDesk, Judge Analisa Torres of the Southern District of New York ruled that Ripple's 1,278 institutional sales transactions violated securities laws, resulting in a $125 million fine, significantly lower than the $1 billion in illegal gains and pre-judgment interest, as well as the $900 million civil penalty sought by the U.S. SEC.

Judge Torres reiterated her stance that Ripple's sale of XRP to retail customers through exchanges does not violate federal securities laws. However, she prohibited Ripple from violating federal securities laws in the future and issued an injunction requiring Ripple to file a registration statement if it plans to sell any securities. Last July, the judge ruled that Ripple's direct sale of XRP to institutional clients violated federal securities laws, but the act of programmatically selling XRP to retail customers through exchanges did not violate any securities laws. During the proceedings, the SEC attempted to appeal that part of the ruling but was unsuccessful.