Federal Judge Rejects Ripple-SEC $50 Million Settlement Citing Procedural Errors
U.S. District Judge Analisa Torres has declined to approve a proposed $50 million settlement between Ripple Labs and the Securities and Exchange Commission (SEC), citing procedural flaws in the filing.
Judge Torres ruled on Thursday that the joint settlement request was improperly submitted since the case remains under appeal, putting the matter outside her jurisdiction. She further noted that even if she had the authority, the motion failed to satisfy the legal standards necessary to amend a final judgment.
The SEC’s lawsuit against Ripple, filed in December 2020, alleges the company raised $1.3 billion by selling XRP tokens without proper registration.
Ripple’s Chief Legal Officer, Stuart Alderoty, addressed the ruling on social media, stating the decision did not change Ripple’s prior court victories. He explained the issue was purely procedural, related to the dismissal of Ripple’s cross-appeal.
Alderoty confirmed that Ripple and the SEC remain in agreement on resolving the case and plan to revisit settlement discussions with the court.
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