- According to ex-SEC official Marc Fagel, Ripple’s $125 million penalty was paid in cash.
- The payment is in escrow pending resolution of the ongoing appeal process.
- Notably, Ripple attempted to negotiate a reduced fine of $50 million but was unsuccessful in its efforts.
Former SEC enforcement attorney Marc Fagel has confirmed that Ripple has already paid its $125 million fine to the U.S. Securities and Exchange Commission in cash, not in XRP.
His statement directly counters widespread online speculation that the penalty could be paid using the XRP token and potentially be added to a U.S. national crypto asset reserve.
Ex-SEC Official: “They already paid in cash. Sorry.”
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.
Related: No, the SEC Isn’t Stalling the Ripple Case: A Former SEC Director Explains the Delay
“They already paid in cash. Sorry,” Fagel wrote in response to claims suggesting Ripple might pay in XRP. “I’m stating facts. There’s a court order requiring them to pay cash into escrow. But you can imagine anything you’d like,” he added in a follow-up post.
This comment was directed at influencers who continue to speculate about different arrangements. One of the more vocal figures, an account known as “XRP Savant,” insisted Ripple could use XRP to fulfill the penalty and claimed it would eventually be added to the U.S. national crypto reserves.
These claims gained traction after a post by crypto commentator John Squire, who suggested the lawsuit’s end was near and implied that XRP might be used for the final payment. Squire cited a FOX interview featuring Ripple CEO Brad Garlinghouse. However, while Garlinghouse confirmed the payment of $125 million to an escrow, he never suggested the payment was in XRP.
Why the Ripple vs. SEC lawsuit is still not officially closed
Meanwhile, the Ripple vs. SEC lawsuit remains technically pending. Fagel explained that the key reason for the delay 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 Neither side has officially withdrawn its appeal, which is required to trigger the final steps of the settlement.
“The appeal dismissal process typically takes one to two months after an SEC vote,” Fagel noted. 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.
Related: Ripple CEO Brad Garlinghouse Commends Congress for the Goodwill in Regulating Crypto Market
Rumors of XRP in the U.S. Reserves Denied
Legal experts also addressed speculation surrounding the possible use of XRP for U.S. national reserves. Last month, Australian-based lawyer Bill Morgan dismissed these theories, stating unequivocally that the U.S. government has no intention of seizing Ripple’s XRP escrow holdings.
“There’s no basis for those claims,” Morgan said, referring to multiple online posts suggesting the U.S. might take over Ripple’s escrow as part of its national crypto strategy.
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