XRP News Today: Ripple Pays $125 Million Fine in Cash Not XRP

Marc Fagel, a former official of the U.S. Securities and Exchange Commission, has confirmed that Ripple has paid its $125 million fine in cash, not in XRP tokens. This clarification comes in response to widespread speculation that the penalty could be paid using XRP and potentially added to a U.S. national crypto asset reserve. Fagel, who previously served as the SEC’s Regional Director in San Francisco, took to the social media platform X to clarify the situation. He explained that Ripple’s settlement payment was made entirely in cash and has already been deposited into an escrow account as part of a court order. Fagel's statement directly counters claims suggesting Ripple might pay in XRP, stating, “They already paid in cash. Sorry. I’m stating facts. There’s a court order requiring them to pay cash into escrow. But you can imagine anything you’d like.”

The payment is in escrow pending resolution of the ongoing appeal process. The key reason for the delay in the finalization of the Ripple vs. SEC lawsuit is the pending appeals from both Ripple and the SEC. Neither side has officially withdrawn its appeal, which is required to trigger the final steps of the settlement. Fagel noted that the appeal dismissal process typically takes one to two months after an SEC vote. Once the appeals are dropped, the escrow arrangement will be finalized, and the cash payment will be released to the SEC. Until then, the money remains in escrow under the court’s supervision, and the case remains technically open. Notably, Ripple attempted to negotiate a reduced fine of $50 million but was unsuccessful in its efforts.

Legal experts have also addressed speculation surrounding the possible use of XRP for U.S. national reserves. Last month, an Australian-based lawyer dismissed these theories, stating unequivocally that the U.S. government has no intention of seizing Ripple’s XRP escrow holdings. The lawyer referred to multiple online posts suggesting the U.S. might take over Ripple’s escrow as part of its national crypto strategy, stating, “There’s no basis for those claims.”

This clarification from Fagel and the legal expert underscores the importance of accurate information in the context of high-stakes legal and financial matters. The ongoing speculation and misinformation highlight the need for clear communication from authoritative sources to prevent the spread of false narratives. As the Ripple vs. SEC lawsuit continues to unfold, the public can expect further developments and clarifications from both parties involved.