SEC and Ripple Seek Court Approval to Settle $125M Escrow Dispute
The U.S. Securities and Exchange Commission (SEC) and Ripple Labs have jointly filed a motion to release $125 million currently held in escrow, marking a potential final step in a legal battle that began in December 2020.
Under the proposed terms, $50 million would be paid to the SEC as a civil penalty, while Ripple would reclaim the remaining $75 million. The motion also seeks to dissolve a previously imposed injunction that restricted certain Ripple activities.
This development comes after years of litigation over whether XRP, Ripple’s native token, was sold as an unregistered security. In a 2023 decision, Judge Analisa Torres ruled that XRP sales on exchanges did not constitute securities transactions, though some institutional sales did.
Both parties previously dropped their respective appeals earlier this year, signaling a shift toward resolution. The new filing argues that “exceptional circumstances” justify the release of funds and the dismissal of the injunction, emphasizing the benefit of avoiding prolonged legal proceedings.
Legal experts note this move could provide regulatory clarity for the broader crypto industry and help restore confidence in XRP, which has recently seen price volatility tied to the case’s outcome.
Judge Torres is expected to rule on the motion in the coming weeks. If approved, it would bring closure to one of the most influential regulatory cases in crypto history.
