Ripple- refers to “exceptional circumstances” as a reason to end the court’s battle of $ 125 million
A long -term court battle between Ripple Labs and the US Securities and the American Stock Exchange (SEC) will soon end. In a new joint file, both Ripple and SEC asked the Manhattan Provincial Court to lift a current order against Ripple and now launch $ 125 million in a guarantee account.
Here is what they suggest:
Of 125 million dollars, 50 million dollars will be paid to the Supreme Education Council as a punishment, while the remaining amount will be returned to Ripple. This step is part of a greater effort to settle their legal battle for about five years, avoid more court appeal, and close this chapter forever.
Fast summary of the case:
The case started in December 2020, when SEC filed a lawsuit against Ripple, claiming that the company XRP sold illegally as unregistered security. Over the years, the case witnessed many rulings, including the partial victory of Ripple in July 2023. The court later ordered Ripple to pay a fine of $ 125 million and put a judicial order on the company to prevent it from violating the laws of securities.
The two sides presented appeals after the ruling, while preserving the legal battle alive. However, the recent talks between Ripple and SEC resulted in a settlement agreement. To move forward with this matter, they need the court’s approval to resolve the previous requests and distribute the compact funds as agreed.
Why change now?
SEC and Ripple explained in their file that “exceptional circumstances” are now present and that make it reasonable to control the previous court ruling. They argue that settling the issue would save the government and company resources, avoid the drawn appeal, and close the case followed by the encryption industry closely.
On the other hand, SEC has recently closed many encryption situations as it updates its approach to regulating digital assets. This step in the case of ripple is appropriate to this trend.
What next?
The court still needs to respond to this joint request. If the judge agrees, the Ripple will pay 50 million dollars to the Supreme Education Council, and to maintain the rest of the money, and both sides will drop their appeal-which will formally end one of the highest legal battles in the world of encryption.
