Ripple Labs files notice of cross-appeal in ongoing battle with SEC

Ripple Labs has filed a cross-appeal with the U.S. Court of Appeals for the Second Circuit The company seeks to challenge the August 7 ruling handed down by Judge Annalisa Torres SEC v. Ripple Labs is a case dating back to 2020 is

Ripple Labs has filed a cross-appeal in an ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).

The petition was filed with the United States Court of Appeals for the Second Circuit. Ripple is appealing an Aug. 7 ruling by Judge Annalisa Torres that ordered it to pay $125 million for violating securities laws.

“Today, Ripple filed a cross-appeal to keep it off the table, including the argument that there can be no 'investment contract' without the essential rights and obligations found in the contract,” said Chief Counsel. said Stuart Alderroti. Posted by Ripple executive, X.

ongoing incident

According to regulators, in 2020 the SEC arrested Ripple, its co-founder and former CEO Christian Larsen, and Ripple's current CEO Brad. Ripple accused Garlinghouse of raising $1.3 billion through the sale of unregistered securities. .

However, Judge Torres scored a major victory against the SEC last year, ruling that XRP is not a security when it comes to sales to the public, its employees, and developers. However, Mr. Torres realized that selling directly to institutional investors is a security.

Alderoti added, “Last year, the SEC unsuccessfully attempted to appeal early the ruling that Ripple's XRP sales on exchanges and Ripple's other distributions of XRP to employees and developers are not securities. They'll probably go for these again – and they'll lose on both again.

Regarding this matter, Garlinghouse said:

“With today's cross-appeal, we look forward to sealing the SEC's fate and finally putting an end to the SEC's enforcement regulatory agenda. Ripple is an industry leader in the first court round; I look forward to being in the lead again this round.”