SEC reaches settlement with Ripple, ending case with $50 million deal

Key Takeaways Ripple and the SEC reached a final settlement to resolve the 2020 lawsuit, requesting to dissolve the court’s injunction and finalize penalties. The deal proposes Ripple pays $50 million to the SEC, with the remaining escrowed funds returned to Ripple. The SEC and Ripple Labs jointly filed a motion today seeking court approval for a $50 million settlement agreement that would end their long-running legal dispute and dissolve the current injunction against Ripple. Under the proposed terms, Ripple would pay $50 million to the SEC, while receiving back the remaining portion of $125 million held in escrow. The agreement, submitted to Judge Analisa Torres in the Southern District of New York, would conclude a legal battle that started in December 2020 when the SEC charged Ripple with conducting unregistered securities offerings through XRP sales. The parties are seeking an “indicative ruling” under Rule 62.1 to proceed with the settlement. If granted, they plan to file a joint motion with the Second Circuit Court of Appeals to return the case to district court for final resolution. Both the SEC’s appeal and Ripple’s cross-appeal have been suspended since April during settlement negotiations. The settlement preserves the court’s July 2023 summary judgment ruling, which determined that Ripple’s institutional XRP sales violated securities laws while finding its programmatic and secondary sales did not. Under the agreement, neither party will challenge or seek to vacate this ruling. Both parties highlighted the public interest in efficiently resolving the case. The SEC confirmed the $50 million civil penalty aligns with federal securities law and meets the Second Circuit’s established standards for fairness and legality. Defense lawyer James Filan noted that if Judge Torres issues the indicative ruling, the case will move back to her court for final approval of the settlement terms. Once the injunction is lifted and funds distributed, both sides will withdraw their appeals, and the case will be over. Source: https://cryptobriefing.com/sec-ripple-50-million-settlement/