Whale Alert, a prominent crypto whale tracking service, recently reported that Ripple had transferred 200 million XRP ($118.96 million) to an unknown wallet.
The timing and magnitude of this transfer have led to widespread speculation that this transaction could be related to the payment of the penalty from the recently concluded lawsuit with the U.S. Securities and Exchange Commission (SEC).
BearX, a crypto investor on X, succinctly captured the sentiment of many in the crypto community with his post: “We won guys… We won.”
We won guys… We won… https://t.co/Rp8w4NnQ7r
— BearX (@bearx589) August 27, 2024
Ripple’s Legal Battle
The case between Ripple and the SEC has been one of the most closely watched in the crypto world. The SEC originally filed a lawsuit against Ripple in December 2020, accusing the company of conducting an unregistered securities offering by selling XRP tokens.
Ripple has consistently denied these allegations, arguing that XRP should be classified as a digital currency, not a security, and the court agreed with Ripple, ruling in July 2023 that XRP itself is not a security and non-institutional XRP sales do not constitute securities offerings.
The protracted legal battle has caused significant uncertainty for XRP holders and the broader cryptocurrency market. However, the legal battle recently ended when the court ruled that Ripple should pay $125 million as a penalty for violating securities laws through its institutional XRP sales. Ripple and the XRP community see the ruling as a huge victory as it is significantly lower than the SEC’s initial request of $1.95 billion.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
The Speculated Payment
Following the court’s decision, Ripple was given 30 days to settle the fine, leading to speculation about how and when the company would pay the penalty. The recent transfer of 200 million XRP has fueled rumors that Ripple is preparing to settle the fine ahead of the deadline. While the exact purpose of the transfer remains unclear, the timing suggests a connection to the SEC payment.
The potential early payment would mark a significant moment in Ripple’s legal journey. Settling the fine would cement the ruling and reinforce XRP’s dual legal clarity pointed out by Ripple CEO Brad Garlinghouse. Moreover, the settlement would likely lead to increased investor confidence in XRP, and potentially a significant price increase.
Additionally, paying the SEC with XRP, the digital asset they tried so hard to suppress, will be a satisfying form of poetic justice. At press time, the XRP army was waiting for the payment confirmation.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter, Facebook, Telegram, and Google News
