In a significant legal concept for Ripple Labs, the federal judge rejected the joint application of the company and the American securities and stock exchanges (SEC) in order to finalize a settlement of $ 50 million in the ongoing legal dispute.
This unexpected ruling of judge Torres may complicate the Ripple regulatory landscape, which has been involved in a controversial fight with SEC in business practices in recent years.
The judge rejects the Ripple-Sec settlement
How Reported By Bitcoinist last week the proposed settlement was to terminate a civil penalty of $ 125 million in relation to Ripple in the final judgment issued on August 7, 2024.
According to the terms of the contract, Ripple was aimed at paying $ 50 million Sec, which would partly fulfill the penalty. Other funds were to be returned to Blockchain payment companyAddicted to a court that agrees to solve an order imposed on a blockchain payment company. This order has significant implications for Ripple surgery and future perspectives.
However, Judge Torres rejected the application, emphasizing procedural errors made by both sides. According to comments on legal experts on X (previously Twitter), judge indicated This ripple and SEC submitted their application in accordance with incorrect legal framework.
They used the 62.1 principle, which is appropriate for the appeal. On the other hand, their actual conclusion consisted of releasing the final judgment, which would require submitting in accordance with the principle of 60. This distinction is of key importance, because Rule 60 is intended for more stern legal actions, especially those who want to remove existing orders.
Options prohibit the cards of $ 125 million
The judge’s ruling emphasizes the gravity of the situation; The courts are usually reluctant to overthrow Final rulingsEven after mutual agreement between the parties.
Judge Torres noticed that the application lacked arguments about “unique circumstances”, the standard necessary for such a legal relief. The lack of these arguments and the lack of quotation of the rule 60 finally led to the rejection of the settlement.
So what are the next steps of Ripple? The company has several options forward. He may supplement his application in accordance with the correct legal principle, ensuring a solid justification for the solution to the order.
Alternatively, Ripple can divide the request, modifying the fine, leaving the order in place. Finally, the company could decide to dismiss it, risking the potential of further Legal complications.
In this failure, the legal battle of Ripple has come to an end. The company is still in the face of a significant penalty of $ 125 million, and the order remains binding. Meanwhile, the SEC case against Ripple is still lively, leaving the future of the Blockchain payment company uncertain.
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