Ripple and SEC Seek Dissolution of XRP Injunction and Release of $125M in Escrow

Ripple Labs and the Securities and Exchange Commission have jointly requested a Manhattan federal court to dissolve an existing injunction and release $125 million held in escrow. The proposal involves Ripple paying a $50 million civil penalty to the SEC, with the remaining funds going back to the company. This development signifies progress in concluding a lengthy legal battle spanning four years. The SEC accused Ripple in 2020 of unlawfully raising $1.3 billion through the sale of XRP as unregistered securities. Despite denying any wrongdoing, Ripple obtained a partial victory in 2023 when the court ruled that certain XRP sales did not violate securities laws. The proposed settlement, pending approval from U.S. District Judge Analisa Torres, includes Ripple and its executives paying $50 million, while the rest of the funds return to Ripple. The SEC, now under new leadership, has agreed to this resolution amidst a shift in crypto enforcement policies. Read more AI-generated news on: https://app.chaingpt.org/news