Ripple has paid a $125 million fine in cash, and the XRP lawsuit is still awaiting the SEC's formal withdrawal.

Ripple Fine Controversy: Cash or XRP? Although some community members speculated that Ripple would pay the $125 million fine with XRP, Marc Fagel posted on X (formerly Twitter) stating: "They have paid in cash. Sorry." He also emphasized that the payment is cash paid directly into a regulatory escrow account per court order, rather than token assets.

Fagel further added that the case is currently not being "delayed" by the court or the SEC, but is progressing according to standard procedures. He stated that the SEC's appeal withdrawal process usually takes place within 1 to 2 months after the vote is passed, and it is currently in that process.

The SEC and Ripple have not officially withdrawn the lawsuit, and the outcome of the case remains undecided According to Fagel's legal interpretation, even if Ripple has paid the fine, the true conclusion of the case still requires both the SEC and Ripple to formally withdraw their respective appeals.

Fagel emphasized: "The funds are currently held in a custodial account and can only be officially transferred to the SEC after the appeal process is concluded. Once both parties withdraw the appeal, the order will take effect immediately, and the funds will be paid to the SEC." He expects that the formal withdrawal of the appeal will be completed in the coming weeks.

"The rumor that the U.S. will use XRP as a national reserve" has been debunked At the same time, rumors about "the U.S. government possibly seizing Ripple's escrowed XRP to expand the national crypto reserves" have been circulating in the community. However, crypto lawyer Bill Morgan has clearly denied this rumor in comments to CoinGape: "No, the U.S. government will not seize XRP escrow."

Despite ongoing speculation in the market about XRP's potential as a "national digital reserve asset," the legal community generally believes that such claims lack a basis in reality and law. Currently, the only clear point is that Ripple has not paid fines with XRP, nor is there any indication that its held tokens will be used for government reserve purposes.

Conclusion: Ripple has fulfilled its obligation to pay a $125 million fine in cash, but the lawsuit between Ripple and the SEC has not officially concluded, largely depending on whether both parties withdraw their respective appeals. Although XRP remains a focal point of attention from the market and regulators, investors should be cautious in discerning unverified claims like "XRP as a national reserve." It is advisable to closely monitor the legal developments between the SEC and Ripple in the coming weeks to understand the long-term value trajectory of XRP.