SEC, Ripple visits court again over $125 million in custody fund – details
Ripple and the U.S. Securities and Exchange Commission (SEC) once again seek changes with the U.S. court to change the structure of the $125 million custodial fund for settlements.
It is worth noting that the five-year legal battle between the two entities over the past three months has been consistent with other friendly developments in the Donald Trump administration.
However, both sides face the important task of persuading the court to change the initial injunction in the final judgment.
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Ripple-Sec drama continues
In 2020, the SEC allegations roguely accused the latter of selling more than $1.3 billion in unregistered securities (XRP) sales in court.
In July 2023, a judge ruled that XRP’s secondary sales were not eligible for securities trading, representing a major part of the cryptocurrency market victory. However, the final judgment made in August 2024 included an injunction that ordered the ripples to pay a fine of $125 million in violation of Section 5 of the Securities Act of 1993.
It is worth noting that the prescribed $125 million was quickly placed in a escrow account before the case ended, and the appeal notice was promptly filed. However, the summary of the two appeals was shelved on April 16, 2025 after the report of an agreement between the two parties.
Ripples, SEC moves again
As part of the agreement between the SEC and Ripple, the parties sought help from the court on May 8, requesting a modification of the $125 ban fee for blockchain companies based on “special circumstances.”
The joint motion proposes to pay only $50 million to the SEC as a fine, while the rest returns it to the ripple. However, the court rejected the motion on May 16 as it did not explain how these “special circumstances” were amended.
In another Joint movement Submitted by both parties on June 12, the parties cleverly stated these “special circumstances”, including the fact that the proposed agreement would not change the court’s preliminary summary judgment.
In addition, the bill highlights the relief required and the parties to the public interest and introduces a settlement agreement that can permanently finalize the case. Additionally, this proposed change will prevent the progress of the appeal summary and save court resources.
Finally, both the SEC and Ripple reiterated that granting the injunction structure modification, thus ending the case is consistent with the SEC’s current policy of rejecting certain crypto cases through joint provisions.
XRP trading at around $2.16 on the daily chart | Source: XRPUSDT on TradingView.com
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