SEC, Ripple Seek Court Approval to Release $125M Locked in Escrow Account

Ripple and SEC Move to Conclude Case, Seek Release of $125M Escrow Funds

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly petitioned a federal court to release $125 million in escrowed funds and bring their long-running legal standoff to a close.

The motion, filed in the Southern District of New York, requests that the court reopen its final judgment under Rules 60(b)(6) and 62.1 due to what the parties called “exceptional circumstances.” Specifically, both sides cite shifting regulatory dynamics and a shared interest in ending appeals and future litigation.

Per the proposed agreement, $50 million of the escrowed funds would go to the SEC, while Ripple would recover $75 million. The filing also aims to quash all outstanding appeals in the Second Circuit.

The original lawsuit, launched in 2020, accused Ripple of raising $1.3 billion through unregistered sales of its XRP token. After years of back-and-forth in court and partial wins for both sides, this latest move could finally lift legal uncertainty that has shadowed XRP for nearly half a decade.

If approved, the settlement may clear the way for renewed institutional interest in XRP, which has recently seen a surge in corporate treasury allocations and ETF speculation.