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- Former SEC official confirms Ripple’s fine was paid in cash.
- XRP not used in Ripple’s $125M SEC settlement, expert says.
- Legal appeals delay Ripple-SEC case closure despite cash payment.
New details have emerged in the Ripple vs SEC lawsuit, confirming that Ripple settled its $125 million penalty with the U.S. Securities and Exchange Commission using cash, not its native cryptocurrency XRP. It was clarified by Marc Fagel, a former SEC regional director, who publicly commented on the circulating rumors indicating otherwise.
As Fagel claims, Ripple followed the court order, which specifically stated that the fine had to be paid in cash. He affirmed that the payment had already been made, rejecting the common speculations that Ripple would utilize XRP tokens. As Fagel stated on social media on July 16, no crypto was used in the deal, and there was no space in the contract to pay otherwise.
Although Ripple was initially supposed to have paid 125 million dollars. After some settlement readjustment, they ended up paying 50 million dollars. The other 75 million have been paid back to Ripple but deposited in escrow. Such funds will also be released in full only when the legal proceedings are actually over.
Legal Appeals Still Prevent Final Closure of the Ripple Case
Although the case is settled, it is still not closed in the court’s official opinion, as both sides have some appeals left. The SEC has appealed the court’s decision that XRP sales on secondary exchanges did not break securities laws. In the meantime, Ripple is fighting against the conclusion that its institutional sales of XRP were unregistered securities offerings.
The two appeals have to be abandoned, and then the court will conclude on the settlement terms. Upon the completion of this process, the amount in the form of the money given in escrow will be released, and the case will be fully closed. As Fagel pointed out, this is a routine legal process, and it generally takes a month or two once official withdrawal notices have been lodged with it.
XRP Market Reaction Remains Positive
Though the legal process remains stuck, XRP is still doing exceptionally well in the market. The token has managed to become the third-largest cryptocurrency in terms of market capitalization. Since last week, XRP has increased by 29 percent and 7.4 percent within the past day, and it is now trading at about $3.15.
Analysts note that any move over $3.30 may result in a fresh run that may break previous record highs. In the present, Ripple’s legal battle is still going on, but an explanation of the fine payment can alleviate investors’ fears.
Also Read: Speculation Mounts as SWIFT Could Adopt Ripple and XRP for Cross-Border Payment Settlements
