XRP skyrocketed by 26% following a pivotal move by a New York federal judge in the ongoing securities lawsuit against Ripple Labs.
XRP skyrocketed by 26% following a pivotal move by a New York federal judge in the ongoing securities lawsuit against Ripple Labs. On August 7, the judge ordered Ripple Labs to pay a $125 million civil penalty and prohibited the company from violating U.S. securities laws. This development marks a crucial step toward concluding the case initiated by the Securities and Exchange Commission (SEC) in December 2020.
Following the announcement, XRP rallied to $0.63, recovering much of its losses from the recent crypto crash, according to data from CoinMarketCap. XRP is currently trading at $0.61, gaining over 20% over the past 24 hours.
Ripple Labs CEO Brad Garlinghouse celebrated the ruling, calling it a victory for Ripple, the industry, and the rule of law. He noted that the SEC's challenges against the XRP community were now over. Meanwhile, co-founder Chris Larsen expressed hope that this decision would mark the end of what he described as the SEC’s “unhinged campaign” against XRP and the "war on crypto."
The price surge took futures traders by surprise, liquidating 40% more short positions than long ones within four hours. According to CoinGlass data, $5.4 million in short positions were wiped out after the surge. If XRP reaches $0.65, another $20 million in short positions could face liquidation. However, a decline to $0.55 could impact long positions, potentially affecting $25 million worth.
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