FameEX Hot Topics | XRP Soars 26% as Ripple Executives Celebrate $125M Penalty as a 'Victory'

XRP’s price has surged 26% as the Ripple vs. SEC case nears its final stages, with no signs suggesting XRP will be classified as a security. This price increase came as a New York federal judge moved closer to concluding a three-year securities lawsuit against Ripple Labs, a move its executives are calling a “victory” for the industry.

On August 7, a federal judge ordered Ripple Labs to pay a $125 million civil penalty and stated the firm is “permanently restrained and enjoined” from violating U.S. securities laws. This ruling indicates that Ripple’s case with the SEC, initiated in December 2020, is approaching its conclusion.

Following this announcement, XRP’s price surged, recouping most of its losses from the broader crypto downturn since August 5, according to CoinMarketCap data. Ripple Labs CEO Brad Garlinghouse celebrated the ruling in an X post, declaring, “This is a victory for Ripple, the industry, and the rule of law. The SEC’s headwinds against the whole of the XRP community are gone.”

Ripple Labs co-founder Chris Larsen added on X, “The SEC's unhinged campaign against us is finally over. Let’s all hope this ends this Administration’s war on crypto.” Meanwhile, other crypto commentators focused on XRP’s price movement following the decision.

Crypto lawyer and Hodl Law founder Fred Rispoli commented on X, “Overall, a HUGE win for Ripple. Although I'm surprised at the $125M hit, Ripple more than made that just on the price move in XRP in the last 5 minutes.” Crypto researcher Ripple Van Winkle told their 108,400 X followers, “XRP IS READY TO FLY. NO MORE HOLDING IT BACK! NO MORE PRICE SUPPRESSION! THE LAWSUIT IS DONE!!”

The price surge significantly impacted future traders, erasing 40% more short positions than long ones in just four hours. According to CoinGlass data, $5.4 million worth of short positions were liquidated after the price surge. If the momentum continues and XRP’s price hits $0.65, another $20 million in short positions could be liquidated.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.