In a landmark decision, a federal judge has ruled against Ripple Labs, ordering the blockchain company to pay a $125 million civil penalty. The Securities and Exchange Commission (SEC) had accused Ripple of selling XRP, its cryptocurrency, as an unregistered security.

The long-running legal battle, which began in December 2020, has had significant implications for the cryptocurrency industry. While the court previously ruled that XRP was not a security in certain circumstances, the latest judgment finds Ripple liable for other sales of the token.

Judge Analisa Torres’ decision imposes a permanent injunction on Ripple, prohibiting the company from future violations of securities laws. The $125 million penalty falls between the SEC’s requested $2 billion and Ripple’s proposed $10 million.

The case has drawn intense scrutiny as it could set a precedent for how other cryptocurrencies are regulated in the United States. Ripple has vowed to appeal the ruling.

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