The long-standing court battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) could soon come to an end. Both sides have approached a Manhattan District Court with a request to lift an existing ban against Ripple and release $125 million currently held in an escrow account.
Proposal from Both Sides
According to the joint filing, out of $125 million, $50 million would be paid to the SEC as a penalty, while the remaining amount would be returned to Ripple. This proposal is part of a larger effort to settle their nearly five-year legal battle, avoid further appeals, and close this chapter.
Case Overview
The case began in December 2020 when the SEC sued Ripple, claiming the company illegally sold XRP as an unregistered security. Over the years, the case saw several rulings, including a partial win for Ripple in July 2023. The court later ordered Ripple to pay a $125 million fine and imposed an injunction on the company to prevent violations of securities laws.
Outlook for Conflict Resolution
The SEC and Ripple explained in their filing that 'exceptional circumstances' now exist that warrant a modification of the earlier court judgment. They argue that settling the case would save both government and company resources, avoid lengthy appeals, and bring closure to a case that has been closely monitored by the crypto community.
The court still needs to respond to this joint request. If the judge agrees, Ripple will pay $50 million to the SEC, keep the remainder, and both sides will drop their appeals, officially ending one of the most high-profile legal battles in the cryptocurrency world.
