Judge Analisa Torres ruled that Ripple violated securities laws with institutional XRP sales but not with programmatic sales to retail investors

Event date

July 13, 2023

Quotes that support claims

In her 2023 ruling, Judge Torres found that Ripple violated securities laws in selling its native XRP token to institutional investors, but did not violate securities laws in putting XRP on exchanges for retail customers to buy in a suit originally brought in 2020 under then-SEC Chair Jay Clayton (who's now the Acting U.S. Attorney for the Southern District of New York).

The SEC in 2020 hit Ripple with a $1.3 billion lawsuit, alleging that the company sold unregistered securities in the form of the cryptocurrency XRP to investors to raise funds. Then, in 2023, a judge ruled that programmatic sales of XRP on cryptocurrency exchanges to retail investors did not qualify as securities.

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Week 28 of 2023