Internet reports that U.S. District Court Judge Analisa Torres rejected a settlement motion jointly filed by the SEC and Ripple. The motion seeks the court to lift the injunction in the August 2024 ruling and approve the release of $50 million of the $125 million in civil penalty custody funds for payment to the SEC, with the remaining funds returned to Ripple. The judge found that the application did not follow the procedural requirements set out in Rule 60 of the Federal Rules of Civil Procedure. Ripple's chief legal officer said it would resubmit a settlement application that complied with the rules. Legal experts analyzed that both parties need to explain in detail the reasons for the settlement in accordance with the Rule 60 standard, including the basis for the SEC to waive other charges. It is expected that the complete process will take 3-5 weeks. The judge emphasized that this rejection only targeted procedural flaws and did not involve a substantive review of the settlement content.