$XRP SEC files to settle lawsuit with Ripple, execs over civil penalty dispute💥

The SEC filing virtually concludes the long-standing legal battle with Ripple, although additional steps are required to ultimately extinguish the lawsuit.🤑

The US Securities and Exchange Commission (SEC) filed a proposed settlement agreement with Ripple, CEO Brad Garlinghouse, and Executive Chairman Chris Larsen to resolve the Commission’s longstanding civil enforcement action against the company and its executives.

In a filing submitted on May 8, the SEC and the defendants jointly requested that the US District Court for the Southern District of New York issue an indicative ruling on whether it would dissolve the injunction from its Aug. 7, 2024, final judgment.

Next steps

The request also asks the court to order the release of the $125 million civil penalty currently held in escrow. Under the proposed terms, Ripple would pay $50 million to the SEC in satisfaction of the judgment, while the escrow would return the remaining $75 million to the company.

The SEC stated that its decision to seek resolution reflects its current enforcement priorities and the broader context of its regulatory posture toward the crypto industry. The regulator emphasized that the settlement does not reflect a judgment on the case’s underlying merits or imply a precedent for other matters.

The final decision is based on Ripple’s agreement to pay a $50 million civil penalty and the expected withdrawal of all appeals.