Ripple Loses Bid to Modify Judgment and Lift Injunction

In a significant legal development, U.S. District Judge Analisa Torres has rejected a critical motion jointly filed by Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The motion had requested an indicative ruling to modify key aspects of a prior judgment. Specifically, Ripple and the SEC had requested that the court dissolve a permanent injunction and reduce the monetary penalty imposed on Ripple by more than 50%.

Parties Fail to Justify Judgment Modification

Despite filing a joint request, both parties failed to invoke Rule 60(b), which allows changes to a final judgment. As a result, they offered no legal basis or enough evidence to justify modifying the ruling. Judge Torres emphasised that without arguments grounded in Rule 60(b), she could not proceed with altering the original order.

Background of the Case

The legal conflict stems from Ripple’s violation of Section 5 of the Securities Act. In a 2023 ruling, the court found that Ripple sold XRP to institutional investors without registering the offering, a clear breach of securities regulations. The court issued a final judgment in August 2024, which included a $125 million penalty and a permanent injunction against further violations.

This recent denial marks a significant setback for Ripple’s efforts to mitigate its financial and operational liabilities. Although Ripple and the SEC attempted to jointly ease the final judgment’s restrictions, the court’s refusal leaves the original penalty and injunction fully intact for now.

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