TLDR
- Ripple $125M fine is held in escrow and not yet paid to the U.S. Treasury.
SEC has not voted on appeal dismissal; payment awaits formal decision.
XRP case paused until SEC files update with court by August 15, 2025.
Ripple withdrew its appeal, but SEC appeal remains open and active.
Ripple’s $125 million penalty in the ongoing XRP lawsuit has not yet been transferred to the U.S. Treasury. The funds are currently held in an escrow account, awaiting formal resolution of the legal dispute with the U.S. Securities and Exchange Commission (SEC).
According to former SEC attorney Marc Fagel, the payment has been deposited into escrow but will not move forward until both parties drop their legal appeals. The case remains in a holding pattern while the SEC considers its next step.
Ripple Payment on Hold Until Appeals Are Formally Resolved
Marc Fagel confirmed on social media that Ripple has deposited the $125 million penalty. However, the funds are being held in an escrow account managed by Ripple’s legal counsel and have not been paid to the Treasury.
Fagel also clarified that the SEC must formally vote to dismiss its appeal before any transfer occurs. Ripple has already withdrawn its own appeal, but the SEC’s appeal remains active in court. Until both sides complete the necessary legal steps, the payment will remain in escrow.
Fagel responded to inaccurate claims online that the funds had already reached the Treasury. He also rejected rumors suggesting Ripple paid the penalty using XRP tokens instead of cash.
Court Sets August 15 Deadline for SEC’s Appeal Decision
The Second Circuit Court of Appeals has paused the XRP lawsuit until August 15, 2025. By that date, the SEC must update the court on whether it plans to proceed with or dismiss its appeal.
This pause has created a waiting period in which no further legal actions will be taken. Although Ripple’s side has shown readiness to move forward, the final resolution depends on the SEC’s decision.
A recent closed-door meeting by the SEC has led to speculation of an imminent dismissal. However, legal experts warn that any decision will follow standard procedures and not be announced without proper process.
Regulatory Changes May Affect XRP Case Outcome
Shifts in U.S. regulatory policy may influence the outcome of the XRP lawsuit. SEC Chairman Paul Atkins recently introduced “Project Crypto,” a new initiative aimed at adapting U.S. securities laws for digital assets.
The SEC also announced approvals for in-kind creations and redemptions in crypto exchange-traded products. These changes suggest that the agency may be softening its stance on digital assets.
Crypto lawyer Bill Morgan pointed to recent language shifts from the SEC that suggest fewer tokens may be considered securities. This regulatory shift could contribute to resolving cases like Ripple’s more efficiently in the future.
Next Steps in XRP Lawsuit Depend on Formal SEC Vote
The lawsuit cannot be closed until both Ripple and the SEC dismiss their appeals. While Ripple has already acted, the SEC has not yet taken formal steps.
Once the SEC votes to drop the appeal, the $125 million in escrow will be transferred to the Treasury. Until then, the case remains open, and the final court ruling will not take effect.
The next update is expected by August 15, when the SEC must provide a status report to the court.
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