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Ripple Labs has agreed to drop its cross-appeal in the ongoing legal case with the U.S. Securities and Exchange Commission (SEC). This decision results in a reduced penalty and marks a significant step toward concluding the prolonged legal dispute.
Settlement Details
In August 2024, the U.S. District Court for the Southern District of New York ruled that Ripple was liable for a $125 million civil penalty. Under the new agreement, the SEC will retain $50 million of this amount, which is currently held in escrow, and the remaining $75 million will be refunded to Ripple. Additionally, the SEC plans to request the court to lift the standard injunction previously imposed at its request.
Statements from Ripple’s Legal Team
Stuart Alderoty, Ripple’s Chief Legal Officer, announced the development on March 25, stating that this should be his “last update on SEC v. Ripple ever.” He emphasized that the agreement is subject to the SEC’s internal approval processes and standard court procedures.
Conclusion of a Lengthy Legal Battle
The SEC initiated the lawsuit against Ripple in December 2020, alleging that the company conducted an unregistered securities offering through its XRP sales. The case has been a focal point in the cryptocurrency industry, with significant implications for regulatory approaches to digital assets. The recent agreement indicates a move toward resolving one of the most prominent legal challenges in the crypto space.
