XRP News Today: Ripple Pays $50 Million Fine in Cash Amid Ongoing SEC Lawsuit

Former SEC enforcement attorney Marc Fagel has clarified that Ripple has paid its $125 million fine in cash, not in XRP, as some in the XRP community had speculated. This clarification comes amid ongoing developments in the Ripple vs. SEC lawsuit, where the payment of the fine was a subject of debate.

Speculation within the XRP community suggested that Ripple might use its native token, XRP, to settle the penalty. A user known as “XRP Savant” proposed that Ripple could pay the SEC using XRP, which would then be moved into reserve. This idea was based on earlier comments from April that hinted at a possible non-cash settlement. However, Fagel dismissed this rumor, stating that the fine had already been paid in cash and deposited into an escrow account as per a court order. The funds will remain in escrow until all legal procedures between the parties are finalized.

Fagel emphasized that the settlement terms were clear: the court explicitly required cash payment, not cryptocurrency. He also noted that Ripple’s penalty was reduced, with only $50 million paid, while the remaining $75 million was returned to the company, pending the conclusion of the case. The delay in the case's resolution is due to unresolved appeals filed by both Ripple and the SEC. The SEC appealed the ruling that XRP sales in secondary markets are not subject to securities laws, while Ripple contested the decision that defined its institutional sales of XRP as an unregistered offering of securities.

Fagel explained that when both parties agree to abandon their appeals, the court will proceed with closing the case, and the escrow money will be released. This process generally takes one to two months following the mutual withdrawal of legal challenges. Despite the payment of the fine, the legal battle remains active until both parties formally conclude their appeals, allowing the court to close the case. The ongoing legal proceedings highlight the complexities Ripple faces in navigating the regulatory landscape surrounding cryptocurrencies. The company has been advocating for regulatory clarity, and this settlement represents a partial victory in its efforts to achieve that goal. The cryptocurrency industry is closely watching the outcome of this case, as it could set precedents for how other digital assets are regulated in the future.