XRP Surges 18% As Ripple Declares Victory In SEC Lawsuit Despite $125 Million Fine

Updated: 08 August 2024

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The XRP price surged over 18% after Ripple declared ”victory” over a lawsuit brought against it by the Securities and Exchange Commission (SEC), despite being fined $125 million.

“This is a victory for Ripple, the industry and the rule of law,” said Ripple CEO Brad Garlinghouse in a post on X. “The SEC asked for $2B, and the Court reduced their demand by ~94% recognizing that they had overplayed their hand. The SEC’s headwinds against the whole of the XRP community are gone.”

A New York federal judge ordered Ripple Labs to pay a $125 million civil penalty on August 7. The judge added that the fintech company is “permanently restrained and enjoined” from violating US securities laws as part of the case brought by the SEC three years ago.

The SEC asked for $2B, and the Court reduced their demand by ~94% recognizing that they had overplayed their hand. We respect the Court’s decision and have clarity to continue growing our company.

This is a victory for Ripple, the industry and the rule of law. The SEC’s…

— Brad Garlinghouse (@bgarlinghouse) August 7, 2024

The XRP price has almost completely recovered from its losses over the last week. During the most recent trading session, the remittance token was able to reach an intraday peak of $0.6408, but has since pulled back to trade at $0.606 as of 3:00 a.m. EST.

XRP’s Surge Triggers Over $12 Million In Liquidations

The XRP price surge caused about $6.6 million in short positions to be liquidated in the past 24 hours, according to CoinGlass data.

Traders betting against the altcoin were not the only ones that suffered. Long positions totaling around $5.6 million were liquidated as well.

There was, however, a substantial difference between the total short and long liquidations in the last hour. Only $2.16K in long positions was liquidated recently. Meanwhile, more than $111K was wiped out in short positions during the same period.

“The SEC’s unhinged campaign against us is finally over,” said Ripple Labs co-founder Chris Larsen in an Aug. 7 X post. “Let’s all hope this ends this Administration’s war on crypto.”