Ripple’s $125 Million Penalty Remains in Escrow Pending SEC Appeal and Regulatory Developments

Key Points

1. The $125 million penalty is held in escrow in cash, not XRP tokens, as confirmed by former SEC lawyer Marc Fagel.

2. The SEC must complete an internal vote to approve dismissal before the penalty can be released and transferred to the U.S. Treasury.

3. Legal experts note that the final outcome of the case depends on the SEC's actions, particularly the withdrawal of its appeal.

4. Once both parties jointly dismiss their appeals, the penalty will be released from escrow, finalizing the legal process.

5. Claims that the penalty payment involves XRP token transfers are incorrect; the payment is entirely in cash.