Ripple and SEC Aim to Resolve $125 Million Lawsuit Together
Ripple and the SEC are working towards settling their ongoing legal battles, potentially ending a significant lawsuit in the cryptocurrency space.
One of the most protracted lawsuits in the cryptocurrency industry may soon find closure as Ripple and the U.S. Securities and Exchange Commission (SEC) have proposed a settlement for their $125 million civil penalty.
According to court documents released by Fox Business journalist Eleanor Terrett, both parties are looking to resolve Judge Analisa Torres’s final ruling prior to the June 16 deadline. The documents indicate a request for a Manhattan court to release the $125 million currently in escrow and to lift the previously imposed injunction. The agreed terms suggest that the SEC would receive $50 million, while Ripple would recover $75 million.
This marks the second attempt to settle, following Judge Torres’s rejection of their first proposal on May 15, wherein she characterized it as procedurally incorrect.
🚨NEW: The @SECGov and @Ripple have jointly requested a Manhattan District court to dissolve the injunction in their ongoing case and release the $125 million civil penalty held in escrow.
They’re proposing that $50 million be paid to the SEC, with the remaining funds returned… pic.twitter.com/UopQuQNG5q — Eleanor Terrett (@EleanorTerrett) June 12, 2025
Bill Morgan, a supportive crypto attorney, commented via X on the distinction between the initial settlement attempt and the recent one, asserting, “In the joint motion filed yesterday by the SEC and Ripple to show exceptional circumstances, the parties rely on authorities that have determined that exceptional circumstances would necessitate modification of a judgment to enable a settlement, which could eliminate pending appeals and provide relief from the judgment as a requisite for settlement.”
If this settlement is not achieved, both Ripple and the SEC are prepared to proceed with their respective appeals and cross-appeals.
Key Insights:
- Ripple and the SEC have collaboratively suggested a settlement for their $125 million civil penalty.
- The proposed terms allocate $50 million to the SEC and $75 million to Ripple.
- This is their second attempt at resolving the issue since their initial motion was rejected by Judge Torres on May 15.
Also, this movement presents a broader context regarding cooperation between Ripple and the SEC, potentially paving the way for clearer regulatory circumstances for future ventures in the crypto domain.
