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As the Ripple vs SEC legal battle nears its next important deadline on August 15, questions and rumors are once again flooding social media. Is Ripple already in the clear? Has the company quietly paid its $125 million fine and dropped the appeal? One social media user recently claimed that Ripple had already paid the fine and announced that they would not appeal Judge Analisa Torres’ decision on the injunction. They also questioned why the SEC hadn’t held a formal vote or publicly declared whether it would appeal the court’s ruling. Ex-SEC Lawyer Sets the Record Straight In response to the confusion, former SEC lawyer Marc Fagel stepped in to offer some clarity. According to him, Ripple has not actually paid the fine yet. The $125 million penalty was placed into an escrow account following last year’s court judgment. It will stay in that escrow account, which is controlled by Ripple’s legal team, until both Ripple and the SEC officially dismiss their appeals. Only then will the money be released and transferred to the U.S. Treasury. Clarification: Ripple has not "paid the fine." The $125m penalty was paid into escrow following the court's judgment last year, and will remain there until the appeals are concluded. Once the parties dismiss their appeals (likely soon), the money will go to the Treasury.— Marc Fagel (@Marc_Fagel) August 5, 2025 Fagel explained that this is a normal legal process. He added that there is no sign yet that either Ripple or the SEC has officially submitted dismissal papers. Ripple may have stated publicly that it is “dropping” the appeal, but that doesn’t mean the process is complete. Ripple might be waiting to coordinate with the SEC and that both sides will likely file a joint dismissal at the same time. Why Did Ripple Lose the Injunction Argument? As for why Ripple failed in its attempt to reduce the fine or cancel the injunction, Fagel explained that Ripple tried to take a legal shortcut that didn’t work. The company argued that the penalty should be reduced, but the court didn’t find that argument strong enough. As a result, the original penalty stood. For now, the $125 million remains untouched in escrow, and the case isn’t fully over until both parties officially dismiss their appeals.