Judge Analisa Torres has dismissed a joint settlement motion filed by the SEC and Ripple, halting efforts to lift an injunction from August’s ruling and release $50 million from a $125 million civil penalty escrow. The judge ruled that the application did not meet procedural requirements outlined in Rule 60 of the Federal Rules of Civil Procedure. Ripple’s Chief Legal Officer has confirmed they will resubmit a compliant settlement application. Legal experts suggest both parties must provide detailed justifications for their proposed settlement under Rule 60, including clarification from the SEC on dropped charges. This process is expected to take an additional 3-5 weeks. Judge Torres specifically emphasized that the dismissal was solely due to procedural issues and not a substantive review of the settlement’s content.