The US Securities and Exchange Commission has filed a notice of appeal against Ripple Labs, the creator of the Ripple XRP cryptocurrency.
The appeal, filed in the Southern District of New York, suggests the long-running, high-profile dispute between Ripple and the US watchdog had not been put to bed yet.
Judge Analise Torres ordered Ripple Labs to pay $125 million in August for securities law violations tied to the launch of the XRP crypto token in 2012.
It was a mere slap on the wrist compared to the $2 billion in fines the SEC was seeking.
Ripple Labs had already secured a partial victory in July 2023, when Judge Torres ruled that XRP is a security when offered to institutions, but not a security when bought by retail investors.
Ripple Labs’ chief legal officer Stuart Alderoty called the appeal “disappointing, but not surprising”.
In a Tweet, Alderoty said: “This just prolongs what's already a complete embarrassment for the agency. The Court already rejected the SEC’s suggestion that Ripple acted recklessly, and there were no allegations of fraud and, of course, there were no victims or losses.
Brad Garlinghouse, Ripple Labs’ chief executive, Tweeted: “If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn’t protected investors and instead has damaged the credibility and reputation of the SEC.
“Somehow, they still haven't gotten the message: they lost on everything that matters. Ripple, the crypto industry, and the rule of law have already prevailed.”
If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn’t protected investors and instead has damaged the credibility and reputation of the SEC.
Somehow, they still haven't gotten the message: they lost on everything that… https://t.co/1hW7xVSL9b
— Brad Garlinghouse (@bgarlinghouse) October 2, 2024
SEC chair Gary Gensler has long been a bogeyman of the US cryptocurrency industry for his hawking take on what he sees as unregistered securities offerings.
Republican presidential candidate Donald Trump, who has been attempting to court the crypto vote, has promised to fire Genler if he takes office.