Ripple’s $125 million civil penalty remains locked in escrow pending both parties formally withdrawing their appeals, delaying final resolution of the long-running legal battle over XRP.
The penalty is held entirely in cash rather than XRP tokens, confirmed by former SEC attorney Marc Fagel. Before funds can transfer to the U.S. Treasury, the SEC must complete an internal vote authorizing dismissal of its appeal.
Legal experts emphasize the case’s ultimate conclusion hinges on the SEC’s withdrawal of its appeal. Final settlement procedures will commence only after Ripple and the commission jointly dismiss existing appeals.
Misinformation circulating about XRP token involvement in the payment is incorrect; documentation confirms the penalty transaction involves purely cash-based transfers without cryptocurrency components.