The ongoing legal fight between Ripple and the SEC is taking another turn, this time focusing on a $125 million escrow fund. While things have calmed down a bit recently, both sides are back in court trying to change the terms of the original agreement.
A Long and Winding Road
This whole thing started in 2020 when the SEC sued Ripple, claiming they sold over $1.3 billion in unregistered XRP securities. Fast forward to July 2023, a judge ruled that some XRP sales weren’t securities, a win for Ripple and the crypto world. But the final ruling in August 2024 still slapped Ripple with a $125 million penalty, which was promptly put into escrow. Both sides appealed, but then things got interesting.
A Proposed Deal (and its Rejection)
In April 2025, whispers of a deal emerged, and both Ripple and the SEC paused their appeals. Then, in May, they jointly asked the court to change the escrow arrangement. Their proposal? Pay the SEC only $50 million, and give the rest back to Ripple. The court said no, wanting a better explanation for why this change was necessary.
The Second Attempt: A More Detailed Plea
Undeterred, Ripple and the SEC tried again in June. This time, they laid out their reasons more clearly:
- No change to the original ruling: The proposed deal doesn’t alter the court’s original decision.
- Benefits all parties: The revised agreement benefits both Ripple and the SEC, and it’s in the public interest.
- A final settlement: This could finally end the lengthy and costly legal battle.
- Saving court resources: The proposed change avoids the need to continue with the appeals process.
- Alignment with SEC policy: The modification aligns with the SEC’s recent approach of dropping some crypto cases through joint agreements.
Essentially, they’re arguing that this revised agreement is a sensible way to wrap things up, saving everyone time and money, and is in line with the SEC’s current policy. Whether the court agrees remains to be seen.
