The U.S. District Court has denied the joint motion from the U.S. Securities and Exchange Commission (SEC) and Ripple, which sought to issue a declaratory judgment to reduce the $125 million civil penalty and overturn the order defining the major sale of XRP to institutional investors as a securities transaction under Section 5 of the Securities Act.
A declaratory judgment allows lower courts, such as district courts, to issue orders on cases pending in the appellate court system, but it requires approval from a higher court.
In a document submitted to the U.S. District Court for the Southern District of New York on Thursday, Judge Analisa Torres stated that the court would not overturn previous rulings, including the $125 million penalty, which are consistent with the federal securities laws passed by Congress. Torres argued:
"Nevertheless, they now claim that it is appropriate, in the public interest, to reduce the civil penalty by 60% and to overturn the permanent injunction issued less than a year ago," Torres wrote.
"Only through the appellate process established by Congress can the parties reduce the penalty and bypass the initial ruling of the lower court, and they cannot directly request the lower court to overturn its order."
Cointelegraph has reached out to Ripple's legal representatives for comment but has not received a response as of the time of publication.
Although the case is gradually coming to a close, and both parties have agreed to fully abandon the litigation, the crypto community is still closely monitoring the case.
On March 19, Ripple CEO Brad Garlinghouse announced that the SEC had withdrawn its appeal against the company and celebrated this move as a "significant victory" for the company and the crypto industry.
As part of concluding the case, both parties submitted a motion requesting the release of the $125 million held in escrow as a monetary penalty.
According to the document, $50 million from the escrow balance will be paid to the SEC as a penalty at a 60% discount, while $75 million will be returned to Ripple, pending court approval.
Related: The Reshaping Moment for Centralized Exchanges: The Evolutionary Divide of the Chinese Triad in 2025
Original: “U.S. Judge Denies Ripple and SEC Joint Request, Upholds $125 Million Penalty”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
