Ripple and SEC Ask Court to Release $125 Million in Escrowed Funds
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Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have taken a new step to settle part of their long legal dispute. On June 12, both parties filed a joint motion asking U.S. District Judge Analisa Torres to give an “indicative ruling” to allow the release of over $125 million in an escrow account.
This money represents a civil penalty placed on Ripple. The two sides have agreed that if the judge allows the request, $50 million would go to the SEC and the rest would be returned to Ripple. However, since the case is still being reviewed by a higher court, the judge can’t change her earlier decision unless the appeals court sends the case back temporarily.
Court Request and Legal Background
The joint motion filed by Ripple and the SEC is based on legal rules (Rules 62.1 and 60(b)) that allow a judge to give a signal, or “indicative ruling,” when a case is on appeal. This lets the parties ask the higher court to briefly send the case back so the lower court can make a new decision. Judge Torres had denied a similar request on May 8, saying the situation didn’t meet the “exceptional circumstances” needed to change a final ruling. This time, however, Ripple and the SEC stressed that approving their request would save time and avoid further legal battles.
The case, which began in 2020, centers on the SEC’s claim that Ripple sold XRP tokens as unregistered securities. Over the years, the lawsuit has become one of the most important in shaping how crypto is regulated in the U.S. A final resolution could bring much-needed clarity to the legal status of XRP and other digital coins.
Settlement Agreement and Future Implications
In the latest motion, the SEC and Ripple explained that this settlement fits with the SEC’s current direction under acting Chairman Mark Uyeda. However, the parties said this agreement is fair, follows legal procedure, and helps avoid unnecessary court actions.
To this end, if the judge agrees and the appeals court allows the case to return briefly, the final judgment can be changed. This would officially cancel the injunction against Ripple and allow the funds to be split as agreed, without more courtroom delays.
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