Ripple Pays $125M SEC Penalty in Cash, Not XRP—Appeal Still Pending
Ripple’s long running battle with the U.S. Securities and Exchange Commission (SEC) has reached a critical stage with the $125 million fine.
Quick overview
- Ripple has paid the $125 million fine to the SEC in cash, not in XRP, as confirmed by former SEC regional director Marc Fagel.
- The case remains unresolved due to pending appeals from both Ripple and the SEC, which must be withdrawn for the settlement to be finalized.
- Legal experts have dismissed speculation that the U.S. government could use Ripple's XRP escrow for national reserves.
- The timeline suggests the case could conclude by the end of Q3 2025 if there are no unexpected developments.
Ripple’s long running battle with the U.S. Securities and Exchange Commission (SEC) has reached a critical stage with the $125 million fine in focus. Online speculation was rampant that the fine would be paid in XRP but former SEC regional director Marc Fagel has put those rumors to rest, saying “They already paid in cash. Sorry.”
In a post on X (formerly Twitter), Fagel—an SEC expert—emphasized “They already paid in cash. Sorry.” He also pointed to the court order requiring cash payment into escrow and said the fine was not settled in XRP.
Importantly Fagel also noted that neither Judge Torres nor the SEC is delaying the case. He explained that the SEC’s process for dismissing an appeal can take 1-2 months after a formal vote and that the current pace is in line with normal legal procedure.
Final Settlement Hinges on Appeal Dismissal
Although the $125 million has been paid the Ripple vs SEC case is not over yet due to one remaining issue: the appeal. As it stands neither Ripple nor the SEC has officially withdrawn their appeals. According to Fagel the case will not be final until both sides drop their appeals.
Once that happens the cash in escrow will be released to the SEC per court orders. Fagel’s post said:
- Fine was paid in cash not XRP
- Escrow is tied to pending appeals
- Dismissals expected within two months
This timeline suggests the case will be over by end of Q3 2025 if no surprises.
No XRP Escrow for National Reserves
Some crypto influencers have been speculating that the US government could use Ripple’s XRP escrow to build national crypto reserves. But legal experts quickly shot down those theories.
Attorney Bill Morgan said “No, it won’t.” Fagel also implied that those claims have no legal or procedural basis.
Despite the hype experts agree on two things:
- Ripple’s fine was not paid in XRP
- No government seizure of XRP escrow is imminent
Until both appeals are withdrawn the legal cloud over Ripple’s future remains. For now XRP investors will have to wait for the process to play out.
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