A U.S. district court denied a joint motion from the US Securities and Exchange Commission (SEC) and Ripple demanding an imprisonment decision to reduce a $ 125 million civil penalty and reverse an order that refers to the main sales of XRP (XRP) to institutional investors as security transactions under Article 5 of the Securities Act.
An implicit decision is giving the lower courts such as the District Court to issue orders for a case that awaits a review of the higher appeal court system, subject to approval from a higher court.
On a Thursday who submitted to the United States District court for the Southern District of New York, Judge Anali Torres wrote that the court would not delete previous decisions, including $ 125 million penaltiescorresponding to the laws of federal security passed by Congress. Torres argued:
Ultimately, the court granted in part of the SEC request for an injunction and a civil penalty because the court found that Ripple’s willingness to push the boundaries of (summary judgment) regulates a possibility that eventually, if it had not yet, crossed the line. ‘None of this has changed – and the parties barely pretend to have it.
However, they are now claiming to be in the public’s interest to cut out the civil penalty of sixty percent and to vacate a permanent injunction that entered less than a year ago, “Torres wrote.
Parties can reduce the penalty and avoid the The initial decisions of the Lower Court Only through the process of appealing to Congress and not by direct petitioning to the lower court to reverse its orders, Torres wrote.
Cointelegraph reached Ripple’s legal representatives for commenting but did not receive a response through the publication time.
The case will continue to be monitored by the Crypto community even as it collapses and both litigants have agreed to overthrow the lawsuit in its entirety.
Related: Fungible Cryptos in Secondary sales are not security, Ripple told the SEC
SEC Lawsuit Winds Down As Ripple CEO celebrates the falling appeal
On March 19, Ripple CEO Brad Garlinghouse announced That the SEC has Its appeal has been lowered against the company and celebrated the transition as a “resounding victory” for the firm and crypto industry.
As part of the wind falling, both parties filed a movement In Release $ 125 million held in the escrow for financial sanctions ordered by the court.
According to the filling, $ 50 million of the Escrow balance will go to the SEC as A 60%-Discounted PenaltyWhile $ 75 million will be returned to Ripple, waiting for approval from the court.
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