For nearly five years, XRP was the most legally haunted coin in crypto. The XRP SEC lawsuit timeline runs from a December 2020 surprise filing to a 2025 settlement that finally closed the book.
Here's the whole fight in one timeline — plus the doodles that make it stick.
Five years in one line: SEC sues (Dec 2020), partial win for XRP (Jul 2023), $50M settlement (Aug 2025).
On December 22, 2020, the SEC sued Ripple Labs, its CEO Brad Garlinghouse, and co-founder Chris Larsen.
The claim: Ripple had raised about $1.3 billion selling XRP as an unregistered security. Translation — the SEC said XRP should be regulated like a stock.
Dec 22, 2020: the SEC accused Ripple of raising ~$1.3 billion through unregistered XRP sales.
The fallout was instant. To avoid legal risk, major US exchanges — including Coinbase — delisted or suspended XRP trading.
XRP holders in the US were stuck. The coin spent years in limbo while lawyers argued.
2021: US exchanges pulled XRP off their shelves, freezing it out of the American market.
The turning point. On July 13, 2023, Judge Analisa Torres issued a split decision.
Programmatic sales on public exchanges to everyday buyers were NOT securities. Institutional sales directly to big investors were. XRP itself wasn't ruled a security — a partial but huge win for Ripple.
Jul 2023: Judge Torres split the verdict — retail XRP sales cleared, institutional sales not.
In August 2024, the court set the price of the institutional violations. Ripple was ordered to pay a $125 million civil penalty.
The SEC's bigger demands — handing over profits and extra interest — were denied. Both sides then filed appeals.
Aug 2024: a $125M penalty — far less than the SEC wanted, with its biggest claims rejected.
In August 2025, both Ripple and the SEC dropped their appeals. The settlement cut the penalty to $50 million, and Ripple reclaimed $75 million held in reserve.
A permanent injunction still blocks direct US institutional XRP sales. After nearly five years, the case was closed — and seven US spot XRP ETFs launched between late 2025 and early 2026.
Aug 2025: appeals dropped, $50M settlement, case closed — and spot XRP ETFs followed.
XRP didn't just survive the SEC — it outlasted it. Our XRP collection turns the five-year courtroom saga into Sharpie-doodle streetwear for the holders who never sold.
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Browse the XRP collection → Vindication, in cotton form.
When did the SEC sue Ripple over XRP? The SEC filed its lawsuit on December 22, 2020, alleging Ripple raised ~$1.3 billion through unregistered XRP securities sales.
What did Judge Torres rule about XRP? In July 2023, Judge Analisa Torres ruled that programmatic (retail) XRP sales were not securities, while institutional sales were. XRP itself was not labeled a security.
Did Ripple win the SEC lawsuit? Largely yes. The 2023 ruling was a major partial win, and the August 2025 settlement reduced Ripple's penalty to $50 million with both appeals dropped.
How much did Ripple have to pay the SEC? The 2024 penalty was $125 million; the August 2025 settlement reduced it to $50 million, and Ripple reclaimed $75 million from reserve.
Is the XRP lawsuit over? Yes. Both sides dropped their appeals in August 2025, formally ending the nearly five-year case.
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