In the U.S. Securities and Exchange Commission (SEC) case against Ripple Labs, a surprise emergency court filing has sparked debate regarding how the agency prosecuted the case and put forward new information that will have a significant bearing on the judgment. The motion, filed by a penny stock trader who was previously hit with a $10 million SEC penalties, asks the court to take into account facts that would support Ripple’s cause.

A Surprise Filing Unveils New Evidence Claims

On April 3, 2025, Justin W. Keener, a non party to the case, filed an emergency letter with the U.S. District Court for the Southern District of New York and claimed that he had crucial evidence that would be helpful and will be in favour of Ripple’s defense against SEC. This new development adds a new layer to the current legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). 

In their ongoing legal dispute, Ripple Labs and the U.S. Securities and Exchange Commission (SEC) had come to an agreement whereby Ripple agreed to pay a $50 million fine instead of the $125 million that was first demanded. In exchange, the SEC intended to urge Judge Analisa Torres to lift the long-standing “obey the law” order.

In the filing specifically addressed to Judge Analisa Torres, Keener revealed that he has important observations that might assist in shedding light on significant issues in the Ripple case.  According to him, his knowledge will be of advantage to Ripple, the wider cryptocurrency industry, and even US politicians.  Referring to his background in securities regulation, Keener stated that he is familiar with the Howey test and investment contracts, and has a carefully selected portfolio of related legal contracts. In the filing Keener stated,

“I, Justin W. Keener, am not a party to this lawsuit but I certify that I have an interest in its outcome for multiple reasons. For one – by God’s miracle – I hold data and information believed to be decisive evidence to settle controlling questions and matters central to 10 years of nightmarish chaos thrown upon all of us unsuspecting Americans. This proprietary information would be of tremendous interest and value to the defendants and the broader crypto industry. Further, I believe the information”

Keener claimed that his unique data on physical investment contracts might play a key role in the Ripple case, potentially benefiting the crypto sector and politicians in Congress. The filing could sway the direction of a lawsuit of great import for U.S. crypto policy, although he wouldn’t provide details about the evidence or how it pertains to Ripple. Eleanor Terrett, Fox Business 

Journalist, took to her X account and wrote:

“The letter, from a man named Justin W. Keener doesn’t make clear what the so-called ‘decisive evidence’ is or how it would benefit Ripple but hints it has something to do with physical investment contracts he’s been collecting.”

What Next?

In spite of the ongoing legal drama, XRP’s price has been quite stable.  This comes after a partial settlement in which Ripple agreed to pay $50 million worth of fines to the SEC and continue litigating the other charges in court. The calm market reaction indicates that investors are holding out for the eventual ruling instead of responding to each new development. If the court favors Ripple, it would constrain the SEC’s ability to regulate cryptocurrency by lawsuit.  If the filing is rejected, though, it could solidify the Commission’s current enforcement strategy.

Neither Ripple nor the SEC has responded to Keener’s lawsuit as of yet, and it is not clear if the court will give his allegations consideration. The Ripple lawsuit, which is already among the most closely followed crypto cases in the US, continues to yield surprising developments. Keener’s entry provides another twist in the ongoing litigation saga, since he makes inaccurate allegations and is not a clean player.