By
Mayowa Adebajo
July 4th, 2024
These actions align with the current phase of penalties in the ongoing Ripple versus the SEC lawsuit.
On July 1, Ripple transferred 1 billion XRP tokens from escrow, raising speculations that progress could be made in its legal dispute with the US Securities and Exchange Commission (SEC). With 1.3 billion XRP retained in spendable wallets, the move has stirred anticipation about the future trajectory of the ongoing lawsuit.
Ripple’s Latest XRP Transaction Activity
According to Whale Alert, a well-known platform for tracking crypto transactions, Ripple conducted significant movements within two hours. The company transferred a total of 1.1 billion XRP across various wallets and then placed 800 million XRP into escrow.
During this time frame, Ripple moved 200 million XRP to one wallet, 300 million XRP to another, and 500 million XRP to a third. Following these transfers, Ripple secured 500 million XRP in one wallet and 300 million XRP in another, totaling 800 million XRP placed into escrow.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 500,000,000 #XRP (238,479,654 USD) transferred from unknown wallet to #Ripplehttps://t.co/anQHaCr4UK
— Whale Alert (@whale_alert) July 1, 2024
Shortly afterward, Ripple added another 100 million XRP to one of the wallets, bringing its balance to 300 million XRP. Overall, these transactions involved moving 1.1 billion XRP to accessible wallets, with 800 million XRP later secured in escrow, leaving a remaining accessible balance of 300 million XRP. In a subsequent series of transactions an hour later, Ripple sent 500 million XRP to one wallet and split another 500 million XRP between two additional wallets.
SEC Settlement Speculation
Speculation surrounding a potential resolution in Ripple’s legal battle with the SEC has intensified following a series of intricate XRP transactions. While Ripple routinely manages XRP held in escrow, the recent transfer of an additional 300 million XRP to transactional wallets has captured the attention of the cryptocurrency community.
These actions align with the current phase of penalties in the ongoing Ripple versus the SEC lawsuit. Both parties have outlined their respective positions regarding penalties related to Ripple’s alleged securities violations. The SEC is pushing for a total penalty of $1.95 billion, including $876 million for disgorgement, an equal amount in civil fines, and $198 million in prejudgment interest. Ripple, on the other hand, argues that civil penalties should be capped at $10 million.
Context of the Ripple vs. SEC Case
The ongoing legal battle between Ripple Labs and the SEC has lasted for more than three and a half years. The SEC alleges that Ripple and its executives violated securities laws by selling XRP without proper registration. Notable developments in 2023, including a court ruling that Ripple’s automated sales did not constitute investment contracts, have undermined the SEC’s position.
The potential penalties that Ripple could face remain a contentious issue as the case progresses. The outcome of the lawsuit has the potential to cause significant market fluctuations, possibly leading to an increase in XRP price if Ripple prevails or a decrease if the SEC succeeds.