Ripple Faces $125 Million SEC Fine for XRP Sales: Quick Daily Forecast
In a significant legal development, Ripple Labs has been directed by a federal judge in Manhattan to settle a $125 million penalty
In a significant legal development, Ripple Labs has been directed by a federal judge in Manhattan to settle a $125 million penalty with the U.S. Securities and Exchange Commission (SEC).
This order stems from allegations that Ripple improperly conducted XRP cryptocurrency sales.
Initially, the SEC pursued a much larger sum, approximately $2 billion, according to statements made by Ripple’s chief legal officer, Stuart Alderoty, earlier in March. The finalized penalty now represents only a small portion of the original claim.
Judge Fines Ripple $125 Million, Bans Future Securities Law Violations https://t.co/R5B1hevwGV
— Igor Os (@igor_os777) August 8, 2024
Details of the SEC Lawsuit Against Ripple
The controversy began in 2020 when the SEC filed a lawsuit against Ripple, along with its CEO Brad Garlinghouse and co-founder Chris Larsen. They were accused of engaging in an unregistered securities offering, raising over $1.3 billion through XRP sales.
The legal battle gained significant attention as one of the SEC’s most substantial cases in the cryptocurrency sector. Although the claims against Garlinghouse and Larsen were dropped in October, the case against Ripple persisted, culminating in this recent penalty.
Ripple’s Reaction and Market Response
Following the court’s decision, CEO Brad Garlinghouse expressed respect for the judgment and highlighted the clarity it provides for Ripple’s future operations.
He shared these sentiments on the social platform X. In response to the ruling, an SEC spokesperson emphasized, “The securities laws apply when firms offer and sell investment contracts, regardless of the technology or labels that they use.”
Ripple ordered to pay $125 million in penalty for improperly selling XRP tokens https://t.co/2815ouRlF7 pic.twitter.com/xq2z4aRtpa
— Reuters Tech News (@ReutersTech) August 8, 2024
Ripple (XRP) Price Forecast: Technical Outlook
Ripple (XRP) is currently exhibiting strong bullish signals in the cryptocurrency market, with today’s session closing at $0.61400, marking a 1.27% increase.
This recent uplift has pushed the price above its 50-day Exponential Moving Average (EMA) of $0.55152, typically a bullish indicator suggesting growing investor confidence.
- The current pivot point sits at $0.60139.
- Immediate resistance levels are identified at $0.65509 and $0.68367, with a further barrier at $0.70992.
- Support levels are established at $0.57888 and $0.52402, providing fallback positions should the price retract.
The Relative Strength Index (RSI), currently at 68.92, indicates that XRP is nearing overbought conditions, which could signal a potential slowdown or reversal of the current upward trend. However, if the momentum continues, XRP could test the next resistance at $0.65509.
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