Federal Judge Torpedoes Ripple-SEC Settlement: $125M XRP Fine Stands Firm

Ripple Labs just got a brutal reality check from the courts. The SEC's $125 million penalty isn't going anywhere—despite backroom negotiations that almost cut a deal.

Here's what went down in the courtroom showdown.

The ruling: No mercy for XRP

Judge Sarah Netburn slammed the brakes on Ripple's attempted penalty reduction, calling the proposed settlement 'inconsistent with regulatory precedent.' The SEC's original $125 million demand now stands unchallenged—a clear warning shot to crypto firms banking on leniency.

Market fallout: XRP holders left holding the bag

XRP prices dipped 8% on the news before recovering slightly—because nothing says 'healthy market' like volatility triggered by bureaucratic chess moves. Meanwhile, SEC Chair Gary Gensler's office reportedly high-fived over coffee (black, no sugar—just like their enforcement style).

Silver lining? At least it's not a $2 billion fine—which is what passes for optimism in crypto regulation these days.

Judge Torres pointed out that the court granted in part the SEC’s request for an injunction and a civil penalty due to the fact that the court found that “Ripple’s willingness to push the boundaries of the [Summary Judgement] Order” evinces a likelihood that it will eventually if it has not already, cross the line.

As Judge Torres put it, “Ripple’s willingness to push the boundaries of the [Summary Judgement] Order” suggests the company is likely to overstep those limits if it hasn’t done so already.

“Nevertheless, they now claim that it is in the public interest to cut the Civil Penalty by sixty percent and vacate the permanent injunction entered less than a year ago,” Judge Torres added. 

Additionally, Judge Torres clarified that the only way for the parties to seek a reduction of the penalty and challenge the lower court’s initial rulings is through the appeals process established by Congress, rather than by requesting the lower court to overturn its decisions directly.

The online community has responded with mixed reactions to the development. Sasha Hodder, founder of Hodder Law Firm, which specializes in legal compliance for digital asset companies, shared her perspective on the denial of the joint request in a post on X.

“Ripple lost again,” Hodder wrote. “After nearly 6 years, the court sees through Ripple’s scam. This judge isn’t falling for it,” she added. 

Ripple lost again.

Judge Torres denied the SEC + Ripple’s joint motion to dissolve the injunction & slash penalties.

After nearly 6 years, the court sees through Ripple’s scam. This judge isn’t falling for it. pic.twitter.com/Gs2XTDqysK

Others, however, view this development as largely procedural, with some suggesting it will have little impact and others questioning the duration of the ongoing litigation.

Following Judge Torres’ ruling, XRP—the native token of Ripple—experienced a modest decline. However, according to CoinMarketCap data at the time of writing, XRP has fallen 4.41% over the past 24 hours and is currently valued at $2.09.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.