SEC v. Ripple Labs (XRP Enforcement Action) event

Event · PageRank 0.0008

Also known as: Ripple case, XRP lawsuit

Overview

The SEC sued Ripple Labs and two executives in December 2020, alleging they raised over $1.3 billion through unregistered securities sales of XRP. On July 13, 2023, U.S. District Judge Analisa Torres issued a split ruling: XRP sold directly to institutional investors constituted unregistered securities offerings, while "programmatic" sales on exchanges to the general public did not, and neither did distributions to executives and grant recipients. The case ended in 2025 when the SEC and Ripple jointly withdrew their appeals at the Second Circuit, leaving the Torres ruling — including a $125 million civil penalty and a permanent injunction against further violations — in place. It remains one of the most-cited U.S. decisions on when a digital asset sale is an investment contract.

Within the DeFi Intel graph, SEC v. Ripple Labs (XRP Enforcement Action) connects to 1 tracked entity, most strongly to SEC.

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Frequently asked questions

What did Judge Torres decide in 2023?

That Ripple's sales of XRP to institutional investors were unregistered securities offerings, but its programmatic sales on exchanges to the public, and distributions to executives and via grants, were not.

When did the SEC sue Ripple and what did it allege?

In December 2020, alleging Ripple and two executives raised more than $1.3 billion through unregistered sales of XRP.

How did the case end?

In 2025 both sides dropped their appeals at the Second Circuit, leaving the 2023 ruling intact along with a $125 million civil penalty and a permanent injunction against further violations.