Ripple Drops $125M Cash Bomb in XRP Lawsuit—Settlement Shocks Crypto Market

Ripple just wrote a check the SEC couldn't refuse—$125 million in cold, hard cash instead of XRP. The move sends shockwaves through crypto legal battles and raises eyebrows on Wall Street.

Behind the scenes: This isn't just a settlement—it's a strategic power play. By keeping XRP off the negotiating table, Ripple maintains control of its digital war chest while regulators get their pound of flesh in fiat.

The irony? Traditional finance gets paid in the very currency it claims to protect—while simultaneously trying to strangle the future of money. Some things never change.

TLDR

• Ripple has paid the $125 million penalty in cash as part of the XRP lawsuit settlement.
• Former SEC lawyer Marc Fagel confirmed that the payment was made in cash and not in XRP.
• The XRP lawsuit remains unresolved as both Ripple and the SEC have yet to withdraw their appeals.
• The final resolution of the case depends on the dismissal of appeals from both parties involved.
• Legal experts have dismissed rumors about the U.S. government using XRP escrow for national reserves.

According to former SEC lawyer Marc Fagel, Ripple has fulfilled its $125 million penalty in cash, not XRP. The XRP lawsuit remains unresolved because both Ripple and the SEC have yet to withdraw their respective appeals formally. Although the payment has been made, legal procedures prevent full closure until appeals are officially dismissed.

Ripple Pays $125 Million in Cash Amid XRP Lawsuit Progress

Ripple has settled the court-mandated $125 million penalty through a cash payment, not in XRP as some speculated. Fagel, referencing official court orders, confirmed the amount was deposited in escrow in compliance with SEC instructions. The escrow arrangement holds the cash until the appeal process reaches formal conclusion.

They already paid in cash. Sorry.

— Marc Fagel (@Marc_Fagel) July 16, 2025

Many believed Ripple would use XRP for the payment, but this claim holds no legal backing or court validation. Official filings and procedural updates indicate a standard enforcement path, without any deviation involving crypto assets. Ripple’s legal team followed the prescribed financial obligations as detailed by the judgment.

Despite widespread rumors, there is no confirmed evidence supporting XRP being used for penalty settlements in this case. Regulatory procedures strictly require monetary penalties to be paid in fiat currency unless otherwise specified. Ripple complied with this legal structure, ending any speculation about token-based settlements in the XRP lawsuit.

Appeal Withdrawal Remains Key to Ripple Lawsuit Resolution

The Core unresolved issue in the XRP lawsuit is the pending appeal from both Ripple and the SEC. As long as these appeals remain active, the case cannot reach final closure. Fagel stated that once dismissed, the escrowed cash will be transferred to the SEC.

The timing of appeal withdrawal depends on internal votes and legal review within the SEC, which typically takes one to two months. As of now, neither party has released an official statement confirming appeal withdrawal. However, indications suggest a resolution is expected in the coming weeks.

Legal observers suggest that standard procedures are being followed without delays caused by the court or regulatory body. The XRP lawsuit’s final stage now depends only on Ripple and the SEC withdrawing their mutual appeal. The court has already outlined the mechanism for releasing funds post-dismissal.

Rumors of XRP Escrow Use Rejected by Legal Experts

Speculation regarding the U.S. government using XRP escrow for reserves has circulated online without factual support. Legal experts, including Bill Morgan, have dismissed these claims, clarifying that escrowed XRP remains under Ripple’s control. No government action has been initiated or authorized regarding such use.

The XRP lawsuit remains confined to established legal frameworks without speculative elements affecting its outcome. Both financial penalties and procedural conduct align with SEC standards. Experts confirm that token seizure or alternate settlement methods have no legal or procedural basis in the XRP lawsuit.