Ripple and the U.S. Securities and Exchange Commission (SEC) filed a joint motion on June 13, asking the court to release $125 million held in escrow.
This amount relates to the penalty decided by the court in 2024 in the Ripple SEC lawsuit.
From the $125 million, $50 million will go to the SEC as the final civil penalty. The rest—$75 million—is expected to be returned to Ripple, pending court approval.
This marks a key step toward closing the long-running legal dispute between Ripple and the SEC.
In the letter submitted to the Southern District of New York, lawyers from both sides stated that the agreement would help close the case and avoid further appeals. The letter said:
“The parties’ proposed resolution will preserve the resources of the Second Circuit by avoiding the need to decide appeals, obviate any remand for further proceedings in this Court, and bring 4.5 years of hard-fought litigation to an end.”
Ripple SEC Escrow Motion Filing. Source: United States Securities and Exchange Commission (SEC)
The Ripple SEC lawsuit, filed in December 2020, focused on the classification of XRP sales and has become one of the most significant legal actions in U.S. crypto regulation history.
Judge Torres’ 2023 Ruling Separated XRP Sales Into Two Categories
In July 2023, Judge Analisa Torres ruled that XRP sales made through exchanges or secondary markets were not securities. However, she determined that institutional XRP sales—those made during funding rounds—did qualify as securities sales.
This ruling led to Ripple being found in violation of securities laws for offering XRP as compensation in deals with investors. As a result, the company was ordered to pay a $125 million penalty in August 2024. The full amount was then placed into escrow.
The court distinguished between XRP token sales made publicly and those offered directly to investors with business interests, which carried legal obligations under U.S. securities law.
SEC Dropped Its Appeal in March, Ripple Also Withdrew Cross-Appeal
The SEC appealed the court’s decision in October 2024, seeking to challenge the outcome. This came one month before the U.S. presidential election.
The agency did not accept the partial victory it had secured through the 2023 and 2024 rulings.
However, on March 19, 2025, Ripple CEO Brad Garlinghouse posted on X that the SEC had dropped its appeal.
He also published a video statement discussing the motion and the status of the case. Ripple responded shortly after by withdrawing its own cross-appeal.
The Ripple SEC lawsuit reached a new phase when Ripple confirmed that it had also secured a court-approved refund, allowing it to keep $75 million from the $125 million initially ordered in penalties.
Final Escrow Motion Aims to Prevent Further Legal Actions
The June 13 filing asks the court to approve the distribution of funds held in escrow. If granted, the order would close the case without additional appeals or hearings at the Second Circuit level.
Both Ripple and the SEC said the motion avoids wasting judicial resources and will finalize a case that has lasted over four years. The escrow funds are ready for disbursement, depending on the court’s decision.
The letter was submitted through Court Listener and has now been added to the official legal record.
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