Ripple reaches agreement with SEC on escrow fund distribution… Dispute set to end pending court approval

Reports indicate that the U.S. Securities and Exchange Commission (SEC) and Ripple have agreed to virtually end their prolonged legal dispute. On this day, both parties jointly requested the court to allocate the $125,000,000 held in escrow.

According to crypto-focused media outlet CoinDesk on the 13th (local time), the SEC and Ripple submitted a joint motion to the U.S. District Court for the Southern District of New York, expressing their intention to partially amend the previous civil penalty ruling. Furthermore, Ripple, together with the SEC, submitted a legal consent form for the withdrawal and distribution of the $125,000,000 deposited in escrow.

Previously, Ripple had proactively deposited $125,000,000 in escrow in anticipation of civil penalties. If this agreement is approved, $50,000,000 will be paid to the SEC as a penalty, while the remaining $75,000,000 will be returned to Ripple.

This motion is based on Rules 60(b)(6) and 62.1 of the Federal Rules of Civil Procedure. Both parties requested the court to modify the final judgment due to the 'exceptional circumstances' stemming from regulatory changes and a shared desire to avoid protracted litigation.

Meanwhile, in 2020, the SEC filed suit against Ripple, alleging the sale of $1,300,000,000 in unregistered securities. Ripple succeeded in winning on certain issues, but discussions over the penalty amount and the terms of a final settlement have continued for years.