In a landmark ruling, Ripple Labs has been fined $125 million and has been handed an injunction against future securities law violations by a federal judge. The ruling, delivered on Wednesday by District Judge Analisa Torres of the Southern District of New York, marks a significant moment in the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC).

Judge Torres imposed the hefty penalty after determining that Ripple’s 1,278 institutional sales transactions breached securities laws, resulting in the fine. This amount, while substantial, is markedly lower than the $1 billion in disgorgement and prejudgment interest, along with the $900 million in civil penalties originally sought by the SEC.

Read more: Ripple vs. SEC: A Year After the Landmark Victory

This latest ruling on remedies follows Judge Torres’ earlier July 2023 decision, which found Ripple in violation of federal securities laws through its direct sale of XRP to institutional clients. However, in a notable split decision, she also ruled that Ripple’s programmatic sales of XRP to retail investors through exchanges did not contravene securities laws. The SEC’s attempt to appeal this portion of the ruling was unsuccessful.

In addition to the financial penalty, Judge Torres issued an injunction against Ripple, prohibiting any future violations of federal securities laws. While the judge stopped short of ruling that Ripple had engaged in unlawful conduct beyond the SEC’s lawsuit, she expressed concern that the company’s aggressive business practices, particularly concerning its “on-demand liquidity” offerings, might eventually lead to further legal transgressions.

“The Court finds that Ripple’s willingness to push the boundaries of the Order suggests a likelihood that it will eventually, if not already, cross the line,” Judge Torres remarked. “Considering all factors, the Court concludes that there is a reasonable probability of future violations, justifying the issuance of an injunction.”

As part of the injunction, Ripple is required to file a registration statement if it intends to engage in any future securities sales.

With the sentence now imposed, the SEC is likely to pursue an appeal of the July 2023 ruling. This comes after the same judge previously denied the SEC’s motion for an interlocutory appeal last year. The SEC and Ripple have since settled charges related to Ripple CEO Brad Garlinghouse and other top executives.

In the wake of the judgment, the price of XRP experienced a modest uptick, rising by 3 cents, approximately 2%.