Ripple's Settlement Hopes Crushed by Judge's Ruling: XRP Plummets

Federal Judge Slams the Brakes on Ripple-SEC Deal

Ripple's dreams of a quick settlement with the U.S. Securities and Exchange Commission were shattered when a federal judge threw out their joint request, calling it a procedural mess. The drama unfolded in the U.S. District Court for the Southern District of New York, where Judge Analisa Torres dropped the hammer on May 15.

Judge Torres: "You Did It Wrong!"

Attorney James Filan was the first to spill the beans on X, sharing the court's smackdown and the accompanying documents. Judge Torres didn't mince words, denying the parties' motion for an indicative ruling and labeling it "procedurally improper." Ouch! Apparently, they forgot to file under Rule 60, which demands proof of exceptional circumstances to modify a final ruling. Rookie mistake, or a calculated risk?

Ripple and SEC's $50 Million Dream Dashed

The rejected motion, filed just a week earlier on May 8, was a Hail Mary attempt to dissolve an injunction and slash a whopping $125 million civil penalty down to a more palatable $50 million. Both Ripple and the SEC were all in on this deal, hoping to wrap up the case during ongoing appeals. But Judge Torres wasn't having it, effectively slamming the door on their plan unless they refile correctly.

Ripple's Chief Legal Officer: "We're Still Winning!"

Stuart Alderoty, Ripple's chief legal officer, quickly jumped on X to reassure the crypto community. He made it clear that the court's denial doesn't touch Ripple's previous legal victories, like the 2023 ruling that XRP isn't a security in programmatic sales. "This is about procedural concerns with the dismissal of Ripple's cross-appeal," he wrote, emphasizing that both Ripple and the SEC are still on the same page about resolving the case.

Attorney Rispoli: "Get Ready for a Messy Fight"

Attorney Fred Rispoli weighed in on the setback, warning that both sides now have to "do it the hard, messy way" by formally requesting relief under the right legal rule. Buckle up, folks, because this battle is far from over!

The SEC vs. Ripple Saga Continues

The SEC first came for Ripple in 2020, accusing them of selling XRP as an unregistered security. The legal battle has been a rollercoaster ever since. In 2023, the SEC scored a partial victory, ruling that institutional sales qualified as securities. But retail sales? Not so much. The fight rages on, and this latest twist has thrown a wrench in the works.

XRP Takes a Nosedive as Traders Panic

The market is feeling the heat from this latest development. XRP took a 7% hit over the last day, while CoinGlass data shows open interest plummeting 9.4% to $4.93 billion. Traders are scrambling, with over $21 million in long positions getting liquidated as they grapple with the uncertainty. All eyes are on XRP now as it tests support at $2.36. Will it bounce back, or is this just the beginning of a downward spiral?