The long-running legal battle between the SEC and Ripple just took another twist. Today, June 26, U.S. District Judge Analisa Torres rejected a joint request from both sides to change the final judgment. That decision shuts down a proposed deal that would’ve cut Ripple’s penalty from $125 million down to $50 million and removed the permanent injunction.
This decision means Ripple’s sales of XRP to institutional investors remain under scrutiny, and the previously imposed penalties stay in place, for now.
In their motion, Ripple and the SEC asked Judge Torres to modify the court’s final judgment from August 2024. That ruling had permanently barred Ripple from violating Section 5 of the Securities Act and imposed a $125 million civil penalty. The two sides argued that they had reached a private agreement and requested the court to honor it by striking down the injunction and slashing the fine by 60%.
BREAKING:JUDGE TORRES HAS DENIED THE MOTION FROM RIPPLE AND THE SEC TO AMEND THE FINAL JUDGMENT, BLOCKING A FAST TRACKED $50 MILLION SETTLEMENT.INSTITUTIONAL $XRP SALES REMAIN UNDER LEGAL PRESSURE pic.twitter.com/APU4rBehRI
— DustyBC Crypto (@TheDustyBC) June 26, 2025
However, Judge Torres ruled that such a request cannot override a final court judgment unless “exceptional circumstances” are clearly demonstrated. In the five-page decision, she emphasized that courts are not bound to accept private settlements when public interest is at stake.
The judge cited the “egregiousness of Ripple’s misconduct” and pointed out that the need for strong enforcement outweighed the arguments made in the joint request.
Moreover, this ruling ensures that Ripple’s institutional XRP sales remain legally restricted. The SEC had previously won on this point, claiming Ripple violated securities laws by failing to register XRP before offering it to institutional buyers. The court found this was not a minor offense and that Ripple knowingly acted outside legal boundaries.
According to the SEC, Ripple had ignored the need for investor protections and continued its unregistered sales for years. Judge Torres’s ruling keeps that judgment intact.
Crypto expert DustyBC Crypto posted on X shortly after the ruling:
“BREAKING: JUDGE TORRES HAS DENIED THE MOTION FROM RIPPLE AND THE SEC TO AMEND THE FINAL JUDGMENT, BLOCKING A FAST TRACKED $50 MILLION SETTLEMENT. INSTITUTIONAL $XRP SALES REMAIN UNDER LEGAL PRESSURE ”
The message quickly spread among XRP holders, who had hoped the court might greenlight the revised settlement. Now, all eyes turn back to the appeals process, as both Ripple and the SEC continue to challenge portions of the final judgment in the Second Circuit.
The decision marks a setback for Ripple’s legal strategy and keeps the pressure high on its institutional sales.
Read Also: Buying Ripple (XRP) Tokens at $2: Is It a FOMO Trap or a Genius Move?
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The post SEC vs Ripple Twist: Court Rejects $50M Settlement, Upholds Penalty on XRP Sales appeared first on CaptainAltcoin.
