Ripple Labs has requested a stay on the $125 million monetary judgment as part of its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The request comes just before the deadline for the company to pay the penalty, initially ordered by Judge Analisa Torres. Both Ripple and the SEC are preparing to file appeals, which could significantly impact the direction of this high-profile case.
Specifically, Ripple filed the request with Judge Torres on September 4, before the payment’s deadline on September 6. A motion that defense lawyer James K. Filan pointed out is time-sensitive. Ripple needs a stay on the monetary judgment that was given on August 7, 2024. Indeed, the LLC has never been as cooperative as it is now, granting the request of Ripple with outstretched hands, indicating a moment of unity out of their bitter confrontation.
Also Read: Ripple Case Faces Uncertain Appeal as Judges Show Support for Torres’ Ruling
Ripple and SEC Agree on Trust Fund Arrangement
In the deal, Ripple agreed to retain 111% of the judgment amount in cash or cash equivalents on behalf of the defendants. This ensures that the funds will be available to the SEC 30 days after the appeal period or upon the lapse of the appeals process. The SEC has 60 days from the ruling made on August 7 to file an appeal. Legal analysts anticipate that the SEC will appeal against one of the remedies or the summary judgment granted in the previous year, which may prolong the legal process.
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In this case, Ripple moves for a stay to prevent the payment until the appeal is decided. If Rippling successfully presents its case in court, the company will likely not have to pay $125 million. However, by choosing not to file a cross-appeal, Ripple may preclude the appeals court’s ability to overturn the penalty.
Conclusion
This legal dispute continues to draw significant attention as both Ripple and the SEC navigate the complexities of their appeals. The outcome of these legal maneuvers could set important precedents for the cryptocurrency industry, and the case may drag on as both sides pursue their legal strategies.
Also Read: Coincheck Lists XRP Alongside Five Other Cryptocurrencies After Ripple’s Legal Win
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.