In a significant turn of events, the giant payments company has filed a motion to stay the enforcement of the fines Ripple Labs amid an ongoing long-running legal dispute with the U.S. Securities and Exchange Commission (SEC).
Ripple takes bold step to ask to stay
On Wednesday, the Ripple team in letter filed a motion to suspend the execution of the monetary part, in particular $125 million fine previous court ruling. The appeal was filed in order to postpone the company’s financial penalties imposed by the court until the resolution of the case concerning whether its XRP the token will be considered a security from August 7, 2024.
Ripple humbly requests that the Southern District Court of Fresh York act on the motion to stay before September 6, when the monetary portion of the judgment is due. In the meantime, the US SEC has already given the green featherlight to the motion to delay.
The letter said:
The plaintiff, the US SEC, has agreed to this request and to the terms of the Proposed Order that Ripple is filing today. The monetary portion of the judgment is due next Friday, September 6, and Ripple respectfully requests that the court consider this stay of enforcement request before that date.
Specifically, the move means the payments company will pay a $125 million fine into an escrow account. If the regulator decides not to do so, appeal application, the funds will be paid after the deadline.
However, if the agency decides not to appeal, the funds will go to Ripple Labs. Since SEC approved these terms, the company is insured under this agreement.
According to the filing, the stay would remain in effect under the proposed order for 30 days after the appeal period has expired or after an appellate decision has been issued. Under the judgment, the SEC will receive post-judgment interest during that period.
In addition, the fund and any interest resulting from its deposit in a trust account registered under the name of Kellogg Hansen will be the property of Ripple, which will have no control over it.
Industry response to request
Ripple’s request for a stay of proceedings has caused quite a stir in the community, which is wondering whether the regulator will appeal. As a result, popular lawyer James A. Murphy, also known as MetaLawMan, took up the case, victim insight into the potential outcome.
According to the lawyer, the only two options at this point are either the SEC is still unsure or has decided to appeal. However, given the developments, the lawyer is confident that the SEC will appeal the motion, as Ripple would be forced to pay a fine of $125 million if the Commission decides not to do so.
As legal battle escalates, the development marks another turning point in a case that could have long-term implications for the cryptocurrency industry.
Featured image from iStock, chart from Tradingview.com
