Federal Judge Rejects Ripple and SEC's Joint Proposal to Nullify $125 Million Fine and Legal Ban in XRP Lawsuit.
Judge Analisa Torres of the US Federal District Court made a ruling on June 26, completely rejecting the proposal by Ripple Labs and the US Securities and Exchange Commission (SEC) to modify the final judgment in the XRP lawsuit. This decision means the $125 million civil penalty and permanent ban against Ripple remain fully intact.
Both parties jointly submitted a proposal to the court, hoping to end ongoing appeal proceedings by significantly reducing the fine and eliminating the ban under Section 5 of the Securities Act. This unusual move occurred after SEC initially requested a fine close to $1 billion but later accepted a much lower amount when the court concluded Ripple illegally sold XRP to institutional investors.
However, Judge Torres firmly rejected this proposal, emphasizing that final judgments can only be changed in truly "special circumstances". In her ruling, she clearly stated: "The parties' motion for a guidance judgment is DENIED."
High Legal Standard Not Met
Judge Torres detailed that nullifying a final judgment can only be done through appeal, not through an agreement between contending parties. She emphasized that the legal standard for this is "very high" and neither Ripple nor SEC met this requirement.
"The court respects the parties' freedom to resolve disputes in good faith. It is also true that the SEC, like any law enforcement agency, has the right to change its perspective after initiating enforcement action," Judge Torres stated.
She also noted that the final judgment established a violation of a congressionally enacted law, making the permanent ban and civil penalty necessary to prevent future violations. More importantly, she emphasized: "The parties do not have the authority to agree that they are not bound by the court's final judgment."
