13.06.2025 08:46
A significant development has emerged in the protracted legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC). Jointly, they have petitioned a Manhattan federal court to lift a prior injunction and release $125 million currently held in escrow. This unprecedented move, filed on Thursday in the Southern District of New York, signals a potential resolution to the nearly five-year-long dispute concerning Ripple's alleged unregistered securities sales.
The parties' motion reveals a proposed settlement encompassing outstanding financial penalties. Specifically, the agreement involves a $50 million payment to the SEC, concluding the financial aspect of the case, and the return of the remaining $75 million in escrow to Ripple. Crucially, this resolution necessitates the court's removal of the injunction stipulated in the August 2024 final judgment, which prohibited Ripple from violating securities laws and mandated the $125 million penalty. This sum has been held in escrow since September 2024, following a court-ordered stay pending potential appeals.
While both the SEC and Ripple initiated appeals last October, these proceedings have been temporarily halted since April to facilitate settlement negotiations. A prior attempt in May to modify the judgment was dismissed by Judge Analisa Torres due to insufficient justification for “exceptional circumstances.” However, the updated filing convincingly argues that the revised penalty and the lifting of the injunction are indeed exceptional circumstances, pivotal for finalizing their settlement, expediting the process, and conserving valuable court resources. Importantly, the proposed amendments are presented as non-alterative to Judge Torres’s July 2023 key rulings.
This joint request represents a substantial step towards a definitive conclusion in this landmark case. The success of this filing and the ultimate acceptance of the proposed settlement remains to be seen but indicates a significant shift towards reconciliation between the two parties, potentially ending years of costly and protracted legal wrangling. The court’s response will be closely watched by the cryptocurrency community and legal experts alike.
