Ripple will drop cross-appeal in SEC case, get refund from lower court ruling

Blockchain firm Ripple Labs’ case with the US Securities and Exchange Commission (SEC) may be officially wrapped up after more than four years, subject to court approval.

According to a March 25 X post from chief legal officer Stuart Alderoty claiming what could be “the last update on SEC v. Ripple ever,” the executive said Ripple will drop its cross-appeal against the SEC in the US Court of Appeals for the Second Circuit. An August 2024 judgment from the US District Court for the Southern District of New York finding Ripple liable for $125 million will essentially stand, but the SEC will keep only $50 million of the amount in escrow — the remaining balance will be returned to Ripple.

“The agency will also ask the Court to lift the standard injunction that was imposed earlier at the SEC’s request,” said Alderoty. “All subject to Commission vote, drafting of final documents and usual court processes.”

Alderoty’s announcement came less than seven days after Ripple CEO Brad Garlinghouse said the SEC would drop its appeal over the August 2024 judgment. At the time of publication, neither the SEC nor Ripple appeared to have made any filing in the Second Circuit since Jan. 31.

This is a developing story, and further information will be added as it becomes available.