The courtroom drama between Ripple and the SEC just got a little twisty, and no, it’s not the kind of twist that means Ripple’s down for the count.
The judge gave their settlement deal a hard pass, but don’t go crying in your coffee just yet.
Bureaucracy
Ripple’s top legal gun, Stuart Alderoty, dropped some truth bombs after a US judge in New York shot down a joint motion by Ripple and the SEC.
They wanted the court to give a thumbs-up on their proposed settlement, but Judge Analisa Torres wasn’t having it.
XWhy? Because, and I quote, the motion was procedurally improper. Translation? They didn’t file the right paperwork, plain and simple.
Imagine the multi-year f*ckery, and you failing it because of the neglected paperwork.
Now, before you start thinking Ripple’s legal empire is crumbling, Alderoty made it crystal clear, this rejection doesn’t undo Ripple’s win at all.
XRP is still not a security, he says, and the judge’s refusal is all about procedural concerns tied to how Ripple’s cross-appeal dismissal was handled. No biggie, just some legal mumbo jumbo slowing down the paperwork.
Discount
Judge Torres wasn’t impressed with Ripple and the SEC trying to sneak through a settlement approval without jumping through the proper hoops.
The court reminded them they’ve got a heavy burden to clear if they want to wipe out that $125 million fine and slash the civil penalties.
And guess what? The judge said they didn’t even try to meet that burden.
Ripple and the SEC agreed to reduce that fine to $50 million, which Ripple CEO Brad Garlinghouse shared on X. So, the SEC’s still pocketing a cool $50 million from this case.
Drama
But honestly, Ripple’s community isn’t exactly thrilled with the vague procedural concerns explanation. People want details.
XOne XRP fan called out Alderoty for promising no more updates since the case was closed, only to have this curveball thrown at them.
Another user flat-out accused Ripple’s leadership of cheating us a little because, hey, if the case was over, why is it still dragging?
And just to add some fuel to the fire, rumors surfaced that former President Donald Trump might have been nudged by a Ripple-connected lobbyist to include XRP in a national crypto reserve plan.
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