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Did Ripple pay a $125 million cash penalty amid its longstanding legal battle with the US SEC? Well, if former SEC lawyer Marc Fagel’s latest comments are to be believed, then it's true. People have long been speculating whether Ripple will pay the fine with its blockchain-based currency, XRP.
Fagel has responded to the industry buzz in a statement, claiming that Ripple has already paid the penalty sum into escrow as instructed by the court in cash. He emphasized that the court order outlines a cash settlement, not a settlement based on cryptocurrency. Fagel denied speculation and highlighted that they are entirely consistent with the standard practices of the SEC enforcement.
The payment of a penalty has garnered public attention, as rumors circulated on social media. However, there has been no official statement or court record indicating that Ripple intended to pay the fine using XRP tokens.
There’s also buzz suggesting if Ripple failed to make the necessary payment, the outcome will ultimately depend on the withdrawal of both parties' appeals to resolve the lawsuit. The money, as Fagel explains, is paid, and then it is kept in escrow until the appeals have been formally withdrawn. He added that the process can typically take one to two months after an internal SEC vote.
To date, neither Ripple nor the SEC has commented on the withdrawal of their appeals. Nonetheless, Fagel held optimism that the two parties would embark on dismissals soon. This would then result in a final court order and the release of the checks from escrow to the SEC.
The legal procedure adheres to standard methods, and the court has not exhibited unusual delays. In a related manner, Fagel further explains that both the SEC and Judge Torres have proceeded with the case management in accordance with the general procedures in federal litigation.
Also Read: Ripple SEC Settlement Rejected: $125M Penalty Remains, XRP Holds Gains
In conjunction with the legal proceedings, rumors also circulated on social media claiming that the US government might use XRP as an escrow for its national cryptocurrency reserves. However, Legal expert Bill Morgan denied the accuracy of these claims, considering them unfounded. He explained that, according to the law and the court, such action has no legal basis.
As debate rages in the general public over whether Ripple should have a broader role in US digital asset policy, the prevailing opinion is that the escrowed XRP will not form a financial reserve for the government.
