Ripple and SEC Request Court Approval to End XRP Case and Split $125M Penalty

Highlights:

• Ripple and the SEC asked the court to end the case and split the $125 million penalty between them.
• Judge Torres will decide if Ripple can recover $75 million and lift restrictions.
• Both sides argue that ending the case now saves time and follows recent SEC crypto actions.

Ripple and the U.S. SEC filed a new joint request on June 12 to end their ongoing legal battle after the court declined an earlier request. The two parties requested the district court in the joint filing to vacate a final judgment and free up a $125 million civil penalty that is held in escrow. According to the request, $50 million would be awarded to the SEC, and the rest would revert back to Ripple. This move follows nearly five years of courtroom proceedings between the crypto firm and the financial agency.

🚨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

The court had earlier turned down a proposed penalty settlement of $50 million. According to Judge Analisa Torres of the District Court for the Southern District of New York, either party had to provide substantial reason to modify the final judgment. In the new filing, Ripple and the SEC state that there are now exceptional circumstances. They claim these conditions support modifying the judgment and lifting the restrictions placed on Ripple’s operations.

Furthermore, the filing states that a settlement of the case would prevent the additional appeals and legal costs. The parties feel that it would be in the best interest of both parties and in line with the recent behavior of the agency to close the case.

Court History and Legal Strategies Shape the Current Filing

The legal dispute began in 2020 when the SEC accused Ripple of selling $1.3 billion in XRP tokens, which the agency considered unlawful. In earlier rulings, Judge Torres found that some of Ripple’s sales did not break the law. However, she ruled that certain direct sales to institutional investors did violate existing rules.

Ripple CEO confirmed earlier that the agency had dropped its appeal in March. This marked a major step toward ending the conflict. Meanwhile, the SEC has removed enforcement actions against other crypto firms such as Coinbase and Kraken. This shift in position began under acting Chair Mark Uyeda, who replaced the former leadership known for a stricter approach.

Last month, the court denied an earlier joint request by Ripple and the SEC to change the final judgment. Judge Torres said they used the wrong legal process and needed to file under Rule 60 of the Federal Rules of Civil Procedure. In the most recent filing submitted on June 12, both parties corrected this error and filed under Rules 60(b) and 62.1. They now hope the judge will approve the revised motion.

The filing also requests permission to ask the Second Circuit Court for a limited remand. The step would grant Ripple and the SEC an opportunity to go back to the district court and complete the proposed amendments. Both opposing and supporting sides contend that granting the motion would save court time and facilitate effective resolution of cases.

What Comes Next in the Ripple-SEC Legal Battle

Experts in the legal arena have provided different results on the case. Attorney Fred Rispoli said the argument may still fall short. However, both he and another lawyer, Sherrie, noted that the court could respond more favorably than before. If Judge Torres approves the request, Ripple could regain access to most of the funds in escrow and move forward freely. A decision is expected within two weeks.

In the newest saga of SEC v. Ripple, I don't like this filing based on how obvious it was from Judge Torres' last ruling that she was pissed. I recommended a long, detailed motion explaining the SEC's failures in crypto regulation (with Commissioner declarations) and some… https://t.co/KTyiqxLnWo

— Fred Rispoli (@freddyriz) June 12, 2025