Key dealers
- A judge rejected a proposed solution that would have reduced Ripple’s penalty from $ 125 million to $ 50 million.
- Judge Analisa Torres emphasized that parties must show exceptional circumstances in order to determine a final judgment.
A federal judge has denied a joint request from SEC and Ripple Labs to approve a solution that would have reduced Ripple’s civil penalty of $ 125 million and raised a constant court prohibition on future securities violations, according to an update from the defense lawyer James Filan.
#XRPCOMMunity #Secgov v. #Ripple #Xrp Judge Torres has denied the parties’ proposal for a sign. “If jurisdiction was restored to this court, the court would deny the parties’ proposals as procedures incorrect.” pic.twitter.com/4S95ilvzsy
– James K. Fillan 🇺🇸🇮🇪 (@Filanlaw) May 15, 2025
In a decisive dated May 15, the US district judge was dismissed Analisa Torres Joint Motionthat had been submitted earlier this month. The proposal sought the court’s approval to resolve a permanent order previously issued against Ripple and to reduce civil penalties from $ 125 million to $ 50 million.
The move was seen as part of an ongoing attempt to resolve its year -long legal struggle for alleged violations of securities laws.
The original penalty had been imposed after the court found that Ripple had violated the Securities Act by offering and selling unregistered securities to institutional investors.
In her order, Judge Torres stated that the request was incorrectly submitted. Although it was presented as a proposal for approval of settlement, it was in fact a request for exemption from the court’s final judgment in August 2024.
Such a request must follow Rule 60, which requires a significantly higher legal standard – specifically a display of “exceptional circumstances” to justify exemption from a final judgment.
“By styling its movement as a” settlement approval “, the parties fail to deal with the heavy burden that they must overcome in order to lead the cuisine and significantly reduce civil penalties. Relief from judgment according to Rule 60 is granted only in the presentation of exceptional circumstances,” obey the order.
Judge Torres noted that the parties neither cited rule 60 nor tried to meet its demanding requirements.
When the proposed settlement was rejected, Ripple remains bound by the August 2024 decision, which found that its institutional XRP sales constituted unregistered securities offers, imposed a fine of $ 125 million and blocked future violations related to these sales.
This is a developing story.
