Ripple’s $125M Penalty Still In Escrow, Not Paid to Treasury Yet

Former SEC lawyer Marc Fagel has clarified that Ripple’s $125M penalty within the XRP lawsuit case nonetheless stays held in escrow. He made this assertion in response to claims suggesting the cost had already been despatched to the U.S. Treasury.

Lawyer Says Ripple’s Payment Paid, But Still Waiting in Escrow

Former SEC lawyer Marc Fagel responded to claims circulating on-line, suggesting the penalty imposed on Ripple by the court docket had been paid to the US Treasury. Fagel defined in a latest X post that Ripple has certainly deposited the $125 million penalty. He then additional highlighted that the funds are at present in an escrow account managed by Ripple’s authorized counsel, moderately than transferred instantly to the U.S. Treasury.

To make clear: neither get together has dismissed its enchantment; they may presumably accomplish that collectively as soon as the SEC votes to approve dismissal. At that time, the penalty, in escrow at Ripple’s counsel’s financial institution, will go to the US Treasury.

Fagel had beforehand refuted claims that Ripple paid its penalty in XRP tokens as an alternative of money. This possible fueled hypothesis that the corporate had already transferred the funds to the U.S. Treasury.

Furthermore, earlier stories had steered Ripple had voluntarily withdrawn its cross-appeal, signaling its willingness to settle. Yet, as Fagel famous within the submit, the SEC’s personal enchantment stays pending. Until either side formally drop their appeals, Judge Torres’s May 2023 ruling received’t develop into ultimate.

This authorized impasse retains the XRP lawsuit unresolved regardless of Ripple’s transfer to deposit the penalty. Fagel dismissed latest rumors suggesting Ripple had already finalized the cost course of. He additionally confused that solely after the SEC formally acts will the funds depart escrow.

New Regulatory Shifts Could Influence XRP Lawsuit Outcome

While the XRP lawsuit’s appeals course of continues to be pending, broader regulatory shifts in Washington may assist clear the trail to a ultimate decision. This week, SEC Chair Paul Atkins unveiled the “Project Crypto” initiative, aimed toward modernizing U.S. securities laws to accommodate digital property higher and encourage innovation.

Additionally, new approvals for in-kind creations and redemptions for cryptocurrency ETPs have been introduced by SEC Chairman Paul Atkins. This may deliver them nearer to funds backed by commodities, reminiscent of gold. This altering place may point out that the SEC is turning into extra lenient. It may end in speedier settlements or the dismissal of ongoing cryptocurrency lawsuits, such because the one involving XRP.

Adding to this optimism, crypto lawyer Bill Morgan pointed out that the SEC’s language has shifted considerably. Instead of labeling most cryptocurrencies as securities, latest statements from SEC leaders recommend solely a smaller subset might fall beneath that definition. Separately, the Trump administration launched its long-awaited crypto coverage report. 

Despite Ripple’s readiness to conclude its facet of the case, the ultimate settlement nonetheless hinges on the SEC withdrawing its enchantment, a course of that would stretch on for weeks. Once each appeals are dropped, the $125 million at present in escrow can be formally transferred to the Treasury.

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Michael Adeleke

Michael Adeleke is a passionate crypto journalist identified for breaking down complicated blockchain ideas and market developments into clear, partaking narratives. He focuses on delivering well timed information and sharp market evaluation that retains crypto lovers knowledgeable and forward of the curve. With an engineering background and a level from the University of Ibadan, Michael brings analytical depth and precision to each piece he writes.