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

Ripple Labs filed its appeal with the U.S. Court of Appeals for the Second Circuit, where the company is trying to challenge Judge Annalisa Torres' August 7 ruling in SEC v. Ripple Labs, a case from 2020.

Ripple Labs has filed an appeal in its ongoing litigation battle with the US Securities and Exchange Commission (SEC).

The record was appealed to the Second Circuit Court of Appeals. Ripple is trying to challenge an August 7 ruling against the company in which it was ordered by Judge Annalisa Torres to pay $125 million for violating securities laws.

“Today, Ripple filed an appeal to confirm that nothing is on the table, including the argument that there can be no “investment contract” without the necessary rights and obligations in the contract,” said Stewart Alderotti, chief legal officer. By Ripple Officer, in a post on X

An ongoing issue

In the year In 2020, the SEC indicted the company's founder and former CEO Ripple, Kristian Larsen, and Ripple's CEO Brad Garlinghouse for raising $1.3 billion in XRP sales, the regulator said. .

However, last year Judge Torres ruled that XRP is not safe, marking a major victory against the SEC regarding its sale to the public, its employees and developers. However, for direct sales to institutional investors, Torres confirmed that these sales were securities.

Alderoty continued: “Last year, the SEC unsuccessfully tried to appeal an earlier ruling that Ripple's XRP sales on exchanges and Ripple's other distributions of XRP, such as employees and developers, were not securities. They will follow these again – and will again be defeated by both.

Speaking on the matter, Garlinghouse said:

“With today's appeal, we look forward to closing the SEC's loophole and finally ending the SEC's rule-enforcement agenda. Ripple was an industry leader in the first round of court cases and we expect to be a leader in this round as well.