The ruling, made by District Judge Analisa Torres of the Southern District of New York, also included an injunction to prevent future violations.

The judge determined that 1,278 institutional sale transactions conducted by Ripple were in violation of securities law, leading to the imposing of the substantial fine. However, the decision reiterated that Ripple's programmatic sales of XRP to retail clients through exchanges did not infringe upon federal securities laws.

The imposed fine of $125.035 million falls significantly below the amount sought by the Securities and Exchange Commission (SEC), which had initially sought disgorgement and prejudgment interest totaling $1 billion, along with $900 million in civil penalties.

This latest ruling follows the judge's judgment in July 2023, which declared that Ripple had indeed violated federal securities laws through its direct sale of XRP to institutional clients. However, it was also determined that Ripple's programmatic sales of XRP to retail clients through exchanges were not in violation of any securities laws. The SEC attempted to appeal this part of the ruling but was unsuccessful during the ongoing case.

Additionally, Judge Torres issued an injunction against Ripple, prohibiting any future violations of federal securities laws. While no specific judgment was made regarding Ripple's actions after the SEC filed the lawsuit, the judge expressed concern over the company's willingness to test the boundaries, stating that there was a reasonable probability of future violations.

Under the terms of the injunction, Ripple is required to file a registration statement if it plans to sell any securities. This move aims to enhance transparency and ensure compliance with regulatory requirements.

It is expected that the SEC will appeal the July 2023 ruling now that the judge has imposed the fine, particularly since the request for an interlocutory appeal was denied previously. Notably, the SEC and Ripple had reached a settlement regarding charges against CEO Brad Garlinghouse and other executives after the interlocutory appeal was denied.

Following the publication of the judgment, the price of XRP experienced a modest increase of approximately 2%, demonstrating the impact of legal decisions on the cryptocurrency market.

The ruling against Ripple serves as a reminder of the regulatory challenges faced by companies operating within the cryptocurrency space. It also raises questions about the future direction and oversight of digital currencies, as regulators seek to strike a balance between investor protection and fostering innovation in this rapidly evolving industry.