Table of Contents
Ripple has requested a pause on the $125 million penalty brought about by a legal case filed by the US Securities and Exchange Commission (SEC).
A 4 September filing shows that Ripple lawyers said the SEC agreed to the request for a delayed payment after 6 September.
Ripple's legal team proposed that it would place 111% of the judgment amount (approximately $139 million), which will be held in a bank account until 30 days “after the time to appeal expires or the resolution of any appeal.”
The move suggests that Ripple could be preparing for an appeal by the SEC.
Ripple was fined $125 million in early August, which CEO Brad Garlinghouse described as a “victory for Ripple.”
The figure was just a sliver of what the Ripple community had potentially faced. Initially, the regulator sought $1 billion in disgorgement and prejudgment interest and $900 million in civil penalty.
Blockhead
Instead, Judge Analisa Torres ordered Ripple to pay $125 million in civil penalties and imposed an injunction against future securities law violations. Torres found that 1,278 institutional sale transactions by Ripple violated securities law.
Dating back to a 2020 lawsuit, the SEC had accused Ripple of conducting an unregistered securities offering worth $1.3 billion by selling XRP.
Judge Torres has not yet approved Ripple's request to delay the payment. An appeal would mean that the 2020 case is not yet over. Either party has 60 days to file an appeal.
Meanwhile, during Korea Blockchain Week, Garlinghouse revealed that Ripple's USD-pegged stablecoin, RLUSD could be launched sooner rather than later.
"We will certainly launch soon. Weeks, not months," Garlinghouse said at the event. "It's called Ripple USD. RLUSD has been minted in that framework."
Ripple began beta testing RLUSD on the XRP Ledger (XRPL) and the Ethereum mainnet last month.
Perion Lim
