Judge upholds Ripple's $125 million fine after rejecting SEC settlement

• Ripple continues to be penalized by institutional sales of XRP
• SEC and Ripple fail to justify settlement with court
• Ripple’s $125 Million Fine Remains Valid

The SEC and Ripple Labs’ joint attempt to review a settlement that would have reduced a $125 million fine has failed. U.S. District Judge Analisa Torres denied a motion seeking to reduce the penalty to $50 million and lift a permanent injunction related to institutional sales of XRP, which were deemed an unregistered securities offering.

#XRPCommunity #SECGov v. #Ripple #XRP Judge Torres has denied the parties' motion for an indicative ruling. “If jurisdiction were restored to this Court, the Court would deny the parties' motion as procedurally improper.” pic.twitter.com/4s95ILvzsy

- James K. Filan 🇺🇸🇮🇪 (@FilanLaw) May 15, 2025

The decision was based on procedural issues, as specified in the ruling dated May 15. According to the judge, the request was improperly presented as a simple approval of an agreement, when, in fact, it was a request to annul a final judgment, which requires stricter legal criteria.

In order for a final judgment to be reversed, it is necessary to demonstrate the existence of “exceptional circumstances,” as provided for in Rule 60 of the United States Federal Rules of Procedure. However, none of the parties involved mentioned this requirement or presented arguments compatible with the established criteria.

“By presenting their motion as a ‘settlement approval,’ the parties fail to address the heavy burden they must face to vacate the injunction and substantially reduce the civil penalty,” Judge Torres said in the ruling.

The penalty was originally imposed in August 2024 after the court concluded that Ripple violated the Securities Act by selling XRP to institutional investors without proper registration. In addition to the fine, a ban was imposed against future violations of the same type.

Even with the refusal of the agreement, Ripple's legal director, Stuart Alderoty, stressed that “nothing in today’s order changes Ripple’s victories.” He stressed that the focus of the decision was strictly procedural and that both parties remain committed to a joint resolution of the case.

Both the SEC and Ripple plan to file a new request with the court in the next steps of the case.