Marc Fagel shuts down XRP lawsuit rumors and confirms Ripple paid the $125M penalty in cash, not XRP, as the focus shifts to the appeal.
A significant change has occurred in the XRP litigation, with attention now directed toward Ripple’s $125 million fine.
According to former SEC attorney Marc Fagel, Ripple has already paid the fine in cash, despite mounting rumors that the payment would be made in XRP.
What is preventing the Ripple vs. XRP lawsuit from being settled?
XRP Vs Cash In Ripple’s $125M Penalty Debate?
Recent focus has shifted to a new XRP vs. SEC case step—a $125 million penalty—after dismissing the SEC’s potential appeal withdrawal.
Marc Fagel claims that the crypto firm has already paid the fine in cash, despite mounting rumors that the company would do so in XRP.
Fagel said in an X post that he is “intimately familiar with SEC procedures” and is aware that Ripple paid $125 million in cash.
“They paid in cash already,” he wrote. Apologies.
Furthermore, Fagel said,
I’m stating facts. There’s a court order that they pay cash into escrow. But you can imagine anything you’d like.
According to Fagel, the litigation is moving along without any problems, and neither Judge Torres nor the SEC is impeding the Ripple case.
He claims that the SEC follows regular protocols for dismissals, which should occur one to two months following a vote.
Lawyer: Appeal Dismissal Is Essential To End Ripple Vs SEC Case
Additionally, according to Fagel, dismissing both parties’ appeals is the main requirement for settling the XRP dispute.
Fagel thinks the SEC and XRP will withdraw their appeal within two months, even though neither party has done so formally.
Fagel said the settlement is contingent on the appeal, restating that Ripple has already paid its $125 million debt.
“Even with the payment, the case won’t be resolved until both parties formally withdraw their appeals,” Fagel said.
He wrote in his X post,
Because then money is sitting in escrow pending appeal, per the same order. Once the parties dismiss their appeals, as appears will happen soon, that order goes into effect and the money goes to the SEC.
Will US National Reserves Use XRP Escrow?
Curiously, there are allegations that the US is using XRP escrow for national reserves, and that Ripple is paying its penalty in XRP.
Several reports recently claimed that the US government would take control of the XRP escrow to increase the size of the cryptocurrency reserve.
Lawyer Bill Morgan, however, denied these allegations, saying, “No, it won’t,” as CoinGape stated.
Although the notion of the US government using XRP escrow for national reserves has generated much discussion, opinions among experts are still split.
But according to Marc Fagel, one thing is sure: XRP will not be used to pay Ripple’s fee, cutting out its possible use as a national reserve.
