The legal battle between Ripple and the Securities and Exchange Commission (SEC) might come to an end after almost 4 long years. This battle might be heading towards a dead end as the duo requested the Manhattan federal court to withdraw the injunction and release the $125 million escrowed. Once the fund is released, Ripple will pay $50 million as a civil penalty to the SEC, while the rest will return to the company.
Back in 2020, the SEC filed a lawsuit against Ripple, accusing it of selling unregistered securities, raising $1.3 million. Nonetheless, Ripple denied the allegations, and by 2023, the company partially won the battle after Judge Torres adjudicated that the programmatic sales of XRP–Ripple’s token– on public exchanges to retail buyers did not constitute securities offerings.
After the ruling, the SEC demanded that the company pay $2 billion as a penalty. However, this amount was reduced to $125 million. With the latest deal, Ripple will pay $50 million to the agency, with the remaining being funded back to it.
XRP/USDT 1-day (Source: Tradingview)
Meanwhile, XRP is trading inside a descending triangle, making lower highs. This shows that the sellers are taking profits at the top while the buyers are not allowing the prices to fall below the lower trendline. If the traders keep selling the lower highs and the pattern is completed, XRP may crash to as low as $1.6. This bearish sentiment has also been displayed by the RSI, as it has fallen below the SMA.
Please note that all price predictions are based on data analysis and are provided for informational purposes only. They do not constitute financial advice. Altcoin Desk is not liable for any financial decisions you make.
