A rumor suggesting Ripple might pay its court-imposed penalty using XRP has been firmly shut down by former SEC attorney Marc Fagel. The claim, which resurfaced this week within the XRP community, was sparked by speculation that the U.S. government’s recent Bitcoin sales were linked to preparations for accepting XRP as a settlement currency. Fagel, however, directly dismissed this theory as fiction, stating that Ripple has already paid the penalty in cash as ordered by the court. XRP Community Speculation Resurfaces The discussion was reignited when crypto personality Zach Rector posed a provocative question on X: “Why didn’t the government want to hold onto its Bitcoin?” In response, XRP commentator “XRP Savant” suggested it was part of a broader setup for Ripple to settle its SEC penalty in XRP. “Setting the stage for Ripple to pay $150M SEC fine with XRP. Then it goes into reserve,” Savant claimed, adding, “As I predicted 4 months ago. It’s nice to see the experts finally catch up with the Savant.” They already paid in cash. Sorry. — Marc Fagel (@Marc_Fagel) July 16, 2025 Savant also cited an April 11 post by analyst John Squire, who wrote: “Ripple vs SEC: The endgame is near. Brad Garlinghouse confirms the lawsuit might be wrapping up. The fine could even be paid in XRP.” Marc Fagel Sets the Record Straight Marc Fagel, a former SEC San Francisco Regional Director, quickly entered the conversation to correct the record. Quoting the original claim, he stated unequivocally: “They already paid in cash. Sorry.” When pressed with Squire’s speculative post, Fagel followed up with a firmer clarification: “I’m stating facts. There’s a court order that they pay cash into escrow. But you can imagine anything you’d like.” Fagel’s comments refer to court documents from the Ripple case, which show that the company was ordered to deposit $125 million, not $150 million, into escrow in U.S. dollars as part of its proposed final judgment with the SEC. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Legal Reality vs. Community Hopes While XRP Savant and others continue to push the narrative of XRP being used for institutional settlements or even government reserves, there is no legal basis or regulatory precedent supporting such claims. Courts require penalties to be paid in fiat currency, especially when dealing with assets that are still subject to regulatory scrutiny. Ripple CEO Brad Garlinghouse has indeed expressed optimism about the lawsuit nearing its conclusion. But there is no public indication, either from Ripple or the SEC, that XRP was ever considered a valid form of payment for the penalty. Cash, Not Crypto Marc Fagel’s comments cut through the noise of crypto speculation with a dose of legal clarity. Ripple’s $125 million fine has been paid in U.S. dollars, not in XRP. While XRP remains central to Ripple’s technology and broader financial ambitions, it is not, as Fagel put it, a substitute for compliance: “There’s a court order that they pay cash. But you can imagine anything you’d like.” In a space often dominated by speculation, facts still matter, and in this case, the facts are crystal clear. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post Ex-SEC Attorney Discredits One Major Rumor About XRP in Ripple Case appeared first on Times Tabloid .
