In a significant development, Ripple Labs, a leading payment firm, has requested a stay of the monetary penalties imposed by the United States Securities and Exchange Commission (SEC) as part of its ongoing legal dispute. This move aims to postpone the financial penalties until a final verdict is reached regarding the status of Ripple’s XRP token.
Ripple Takes Bold Step With Stay Request
On Wednesday, Ripple’s legal team filed a letter demanding a stay of the monetary portion of the court’s judgment, specifically the $125 million fine. This plea is a strategic effort to delay the financial penalties pending the outcome of the case, which is set to be determined on August 7, 2024.
Ripple respectfully requests that the Southern District Court of New York take action on the stay motion before September 6, the current due date for the monetary portion of the judgment. Interestingly, the US SEC has already consented to the delay request, indicating a cooperative approach between the parties.
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The letter from Ripple stated:
“Plaintiff, the US SEC, has consented to this request and to the terms of the Proposed Order that Ripple is submitting today. The monetary portion of the judgment is currently due to be paid this coming Friday, September 6, and Ripple respectfully asks that this court act on this stay request before that date.”
This move implies that Ripple is placing the $125 million fine into an escrow account. If the SEC does not appeal the motion, the funds will be released once the deadline has passed. Conversely, should the agency choose not to file an appeal, the funds will be returned to Ripple Labs. Given the SEC’s approval of these terms, Ripple is safeguarded by this agreement.
According to the filing, the stay will be effective under the proposed order for 30 days following the expiration of the appeal period or any appeal decision. During this time, the SEC will receive post-judgment interest as specified in the judgment. Additionally, the fund and any interest accrued from its deposit in the escrow account, registered under the name Kellogg Hansen, will be beneficially owned by Ripple, with no control over it.
Industry Response To The Motion
Ripple’s motion for a stay has caused quite a stir within the crypto community, with many speculating whether the SEC will file an appeal. Prominent lawyer James A. Murphy, also known as the MetaLawMan, has analyzed the situation, providing insights into the potential outcomes.
According to Murphy, the SEC has two options: either they are still deliberating or have decided to appeal. Considering the current developments, Murphy is confident that the SEC will appeal the motion. He argues that if the SEC had opted not to appeal, Ripple would have been compelled to pay the $125 million fine.
This legal battle continues to intensify, marking another pivotal moment in a case that could have long-term implications for the cryptocurrency industry.
