Ripple Secures $75M Refund from SEC, Withdraws Cross-Appeal

Ripple to Receive $75M of Court-Ordered Fine Back from SEC, Drops Cross-Appeal

In a major development, Ripple has announced that it will receive $75 million of the court-ordered fine from the Securities and Exchange Commission (SEC), dropping its cross-appeal in the process.

The news comes after a federal court in New York ruled in favor of the SEC in January, ordering Ripple to pay a $1.5 billion fine for allegedly selling unregistered securities. However, Ripple had appealed the decision, arguing that the SEC's claims were based on a flawed legal theory.

As part of the settlement, Ripple will receive $75 million of the fine, which the company will use to pay legal fees and other expenses related to the case. The remaining $1.425 billion will be paid to the SEC.

Ripple CEO Brad Garlinghouse said in a statement that the company is "pleased to put this matter behind us" and that the settlement "allows us to focus on our mission of building a more efficient and accessible financial system."

The SEC had accused Ripple of violating securities laws by selling XRP, a digital asset, without registering it as a security. Ripple had argued that XRP is a currency, not a security, and that the SEC's claims were based on a flawed legal theory.

The settlement marks a significant victory for Ripple, which has been embroiled in a protracted legal battle with the SEC. The case has had significant implications for the broader cryptocurrency industry, with many observers watching closely to see how the SEC would enforce its regulations in the space.

The settlement is expected to be finalized in the coming weeks, pending approval from the court.