A judge has agreed to delay enforcement of the $125 million civil penalty imposed on Ripple, opening the door to a possible appeal in the payments company’s long-running legal battle with the U.S. Securities and Exchange Commission (SEC).
On Thursday, District Judge Analisa Torres ordered a stay of the monetary portion of the case’s final judgment after Ripple filed a request to which the SEC agreed.
The company’s $125 million fine was originally due on Friday, September 6, after Torres imposed it in an order last month.
Instead, Ripple will now deposit 111% of the fine ($138.75 million) into an interest-bearing account in the name of the company’s lawyers.
The company retains accrued interest and beneficial ownership of the account, but has no control over the funds.
The account will be unlocked if a higher court overturns Torres’ ruling or if both parties agree that the money should go toward Ripple’s fine. Torres’ stay will last 30 days after the October appeal deadline if neither Ripple nor the SEC appeal, or 30 days after a decision by the Court of Appeals.
The SEC first sued the San Francisco-based payments company in late 2020 for allegedly selling XRP as an unregistered security.
Last year, Torres ruled that Ripple’s automated, open-market sale of XRP did not constitute a security offering, contrary to what the SEC claimed.
However, the judge sided with the SEC’s contention that Ripple’s direct sales of XRP to institutional buyers were securities offerings.
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