US court rejects SEC's settlement motion with Ripple due to procedural errors

Odaily Planet Daily News According to Cryptoslate, U.S. District Court Judge Analisa Torres rejected the settlement motion jointly submitted by the SEC and Ripple. The motion seeks the court to lift the injunction in the August 2024 judgment and approve the release of $50 million of the $125 million civil penalty escrow to be paid to the SEC, and the remaining funds to be returned to Ripple. The judge determined that the application did not follow the procedural requirements of Rule 60 of the Federal Rules of Civil Procedure. Ripple's chief legal officer said it would resubmit a settlement application that complies with the rules. Legal experts analyzed that both parties need to explain the reasons for the settlement in detail according to the Rule 60 standard, including the basis for the SEC's decision to abandon other charges, and the complete process is expected to take 3-5 weeks. The judge emphasized that this rejection was only for procedural defects and did not involve a substantive review of the content of the settlement.