In a major turn of events, the payment giant has requested a halt to financial sanctions. Ripple Labs As its long legal dispute with the U.S. Securities and Exchange Commission (SEC) continues.
Ripple Takes Bold Step With Residency Application
On Wednesday, the Ripple team at letter Apply to stop the cash portion, especially $125 million fine From the previous court ruling. The petition was filed in an attempt by the company to postpone the financial penalties imposed by the court pending the outcome of the case regarding whether the company has paid its debts. Ripple currency The token will be considered a security on August 7, 2024.
Ripple humbly requests that the Southern District of New York Court take action on the stay request before September 6, when the monetary portion of the judgment is now due to be paid. Meanwhile, the SEC has already granted the stay request.
The message said:
Plaintiff, The SEC has granted this motion and the terms of the proposed order filed by Ripple today. The monetary portion of the judgment is currently scheduled to be paid next Friday, September 6, and Ripple respectfully requests that this Court act on this stay request prior to that date.
Specifically, the move means the payment company is putting the $125 million fine into an escrow account. If the regulator chooses not to do so, attractiveness Suggestion: The funds will be released once the deadline is passed.
However, if the agency decides not to appeal, the funds will go to Ripple Labs. Securities and Exchange Commission Upon acceptance of these terms, the Company has insurance under this Agreement.
According to the filing, the stay under the proposed order would be in effect for 30 days after the end of the appeal period or any appeal decision. As specified in the ruling, the SEC would receive post-judgment interest during that period.
Furthermore, the Fund and any interest arising from its deposit into the escrow account registered under the name of Kellogg Hansen will be beneficially owned by, without any control over, Ripple.
Industry response to movement
Ripple’s request to stay has sparked a frenzy within the community over whether the regulator will appeal. As a result, renowned attorney James A. Murphy, also known as MetaLawMan, researched the case, an offer Insights into the possible outcome.
According to the lawyer, the only two options at the moment are either the SEC is still uncertain or it decides to appeal. However, given the developments, the lawyer is confident that the SEC will appeal the decision because Ripple would have had to pay a $125 million fine if the commission had chosen not to do so.
As is Legal battle With tensions on the rise, this development marks another turning point in the case that could have long-term implications for the crypto industry.
Featured image by iStock, chart by Tradingview.com