A federal judge has rejected a joint motion by Ripple Labs and the Securities and Exchange Commission (SEC) to reduce a $125 million penalty and remove the permanent injunction on Ripple’s institutional XRP sales.
The motion, filed earlier this month, proposed dissolving the injunction and reallocating the $125 million civil penalty—$50 million to the SEC and $75 million returned to Ripple. This marks the second unsuccessful attempt to alter the court’s 2024 ruling.
Judge Analisa Torres emphasized that modifying a final judgment requires “exceptional circumstances” under Rule 60(b), which the parties failed to demonstrate. The judge also rejected arguments that recent SEC policy changes or the creation of a crypto task force justified revisiting the case outcome.
The SEC and Ripple referenced other crypto-related cases where the SEC voluntarily dropped lawsuits. However, Judge Torres noted those cases did not reach final rulings or involve injunctions or penalties, unlike the Ripple case.
“None of the enforcement actions cited by the parties involved an injunction or a civil penalty. In each of those cases, the SEC dismissed its case before a court found a violation of federal securities laws,” the ruling stated.
Judge Torres advised that if the parties wish to end the litigation, they should withdraw pending appeals. To overturn the judgment, they must follow appellate procedures rather than request modification of the final ruling.
She underscored that final judgments serve the public interest by enforcing federal investor protection laws. Allowing the penalties to be reversed could undermine compliance incentives for other firms.
The court concluded that the second motion did not meet the high standard needed to amend the judgment, leaving the $125 million penalty and injunction in place.