The U.S. court rejects SEC and Ripple's joint motion to dismiss the case based on a procedural defect

On May 16th, Judge Analisa Torres of the U.S. District Court rejected the previously jointly submitted settlement motion by the SEC and Ripple. This motion aimed to have the court lift the injunction from the August 2024 ruling and obtain approval for the release of $50 million from the $125 million civil penalty escrow to be paid to the SEC, with the remaining funds to be returned to Ripple. It is reported that the judge determined that the application did not meet the procedural requirements of Rule 60 of the Federal Rules of Civil Procedure. Ripple's Chief Legal Officer stated that they will resubmit a settlement application that complies with the rules. Legal experts analyzed that both parties need to provide detailed reasons for the settlement in accordance with the standards of Rule 60, including the basis for the SEC's decision to drop other charges. The entire process is expected to take an additional 3-5 weeks. The judge emphasized that this rejection only relates to procedural defects and does not involve a substantive review of the settlement content.