(2020)
SEC v. Ripple Labs
Year
2020
Criminal or Civil
Civil
Year Resolved
2023
Jurisdiction (Court/State)
U.S. District Court for the Southern District of New York
Filed By
U.S. Securities and Exchange Commission (SEC)
Penalty/Fine (USD)
$1.3 billion alleged offering; Final settlement (July 2023): Ripple agreed to pay $1.3 billion in disgorgement, interest, and penalties (civil resolution split across penalties and other remedies)【source: SEC litigation documents, July 2023】
Lawsuit Overview
The SEC charged Ripple Labs Inc. and two executives for conducting an unregistered securities offering by selling XRP tokens, raising over $1.3 billion since 2013. The lawsuit alleges Ripple used these funds to finance its business and that the executives personally profited from unregistered XRP sales totaling $600 million.
Category
Unregistered Securities Offering
Notable Individuals Involved
Christian Larsen (Co-founder, Executive Chairman)
Bradley Garlinghouse (CEO)
SEC Enforcement Division: Stephanie Avakian, Marc Berger, Jorge Tenreiro, Kristina Littman
Investor Loss Estimate
Not explicitly disclosed; the SEC alleges over $1.3 billion raised in unregistered sales. Losses likely varied depending on XRP’s price volatility during the investigation period.
Final Outcome
In July 2023, Judge Torres ruled that XRP sales to institutional investors were securities, but not to retail buyers via exchanges. Ripple partially won and partially lost. A settlement was reached with the SEC in October 2023.
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