Judge Rejects SEC and Ripple Request for Indicative Ruling on $50M Settlement

By: cryptonews|2025/05/16 13:15:04
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The U.S. District Court for the Southern District of New York has rejected a joint request from the Securities and Exchange Commission (SEC) and Ripple Labs for an indicative ruling tied to their ongoing legal battle. The decision marks a procedural setback for both parties, which had recently reached a tentative settlement in the high-profile case. Last week, the SEC and Ripple jointly submitted a request seeking a statement from the court on whether it would approve a deal to reduce Ripple’s financial penalties. Under the proposed agreement, the original $125 million penalty imposed in August 2024 would be reduced to $50 million. The parties also sought to lift a court-imposed injunction that restricts Ripple’s business activities. However, District Judge Analisa Torres dismissed the motion on procedural grounds. In a court order issued Thursday, she explained that the court lacks jurisdiction while the case remains under appeal at the U.S. Court of Appeals for the Second Circuit. What Is an Indicative Ruling? An indicative ruling is a mechanism under Rule 62.1 of the Federal Rules of Civil Procedure, allowing a district court to signal how it might rule on a motion if the case were remanded from appellate court. While the district court cannot act on the motion itself during an appeal, it may offer an opinion to help guide higher court deliberations. In this case, Judge Torres declined to issue such a signal, writing: “Accordingly, if jurisdiction were restored to this Court, the Court would deny the parties’ motion as procedurally improper.” Background Ripple and the SEC have been locked in a legal battle since 2020, when the agency sued the crypto company for allegedly offering XRP as an unregistered security. In August 2024, the court imposed penalties totaling $125 million and placed an injunction on Ripple’s institutional sales of XRP. Both Ripple and the SEC appealed aspects of the judgment. Their recent joint settlement proposal appeared aimed at ending the protracted litigation, but the appellate process now remains the primary legal pathway. What’s Next? With the request for an indicative ruling denied, the parties must wait for the Second Circuit to either resolve their cross-appeals or remand the case back to the district court. Until then, any revisions to the August 2024 judgment remain on hold.

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On March 4, 2026, DDC Enterprise Limited (NYSE American: DDC) today announced preliminary, unaudited full-year financial performance for the year ended December 31, 2025. The company expects to achieve record revenue and record positive adjusted EBITDA, primarily driven by continued growth in its core consumer food business and overall margin improvement. The final audited financial report is expected to be released in mid-April 2026.


2025 Full-Year Financial Highlights


Revenue: Expected to be between $39 million and $41 million, reaching a new company high.


Organic Growth: Excluding the impact of the company's strategic contraction of its U.S. operations, core revenue is expected to grow 11% to 17% year over year.


Gross Profit Margin: Expected to be between 28% and 30%, reflecting continued operational efficiency improvements.


Adjusted EBITDA: The company expects to achieve a positive full-year result in 2025, a significant improvement from a $3.5 million loss in 2024, mainly due to rigorous cost controls and a higher-margin sales mix.


Core Consumer Food Business Performance


In 2025, DDC's core consumer food business maintained strong operational performance.


The company also disclosed Core Consumer Food Business Adjusted EBITDA, a metric that further excludes costs related to its Bitcoin reserve strategy and non-cash fair value adjustments related to its Bitcoin holdings from adjusted EBITDA to more accurately reflect the core business performance.


In 2025, Core Consumer Food Business Adjusted EBITDA is expected to be between $5.5 million and $6 million.


Bitcoin Reserve Update


In the first half of 2025, DDC initiated a long-term Bitcoin accumulation strategy, holding Bitcoin as its primary reserve asset.


As of December 31, 2025: The company holds 1,183 BTC.


As of February 28, 2026: Holdings increased to 2,118 BTC


Today's additional purchase of 65 BTC brings the company's total holdings to 2,183 BTC


DDC Founder, Chairman, and CEO Norma Chu stated, "We are proud to have closed 2025 with record revenue and positive adjusted EBITDA, demonstrating the steady growth of the company's consumer food business and the ongoing improvement in profitability. We are building a disciplined, growth-oriented food platform and strategically allocating capital to Bitcoin assets with a long-term view, aligning with our core beliefs. We believe that this dual-track model of 'Steady Consumer Business + Strategic Bitcoin Reserve' will help DDC create lasting long-term value for shareholders."


Adjusted EBITDA Definition
For the full year 2025, the company defines "Adjusted EBITDA" (a non-GAAP financial measure) as: Net income / (loss) excluding the following items:· Interest expense· Taxes· Foreign exchange gains/losses· Long-lived asset impairment· Depreciation and amortization· Non-cash fair value changes related to financial instruments (including Bitcoin holdings)· Stock-based compensation


About DDC Enterprise Limited


DDC Enterprise Limited (NYSE: DDC) is actively implementing its corporate Bitcoin Treasury strategy while continuing to strengthen its position as a leading global Asian food platform.


The company has established Bitcoin as a core reserve asset and is executing a prudent, long-oriented accumulation strategy. While expanding its portfolio of food brands, DDC is gradually becoming one of the public company pioneers in integrating Bitcoin into its corporate financial architecture.


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