Lawyer Denies Rumors About US Seizing XRP Escrow for Reserve

Ripple’s lawyer Bill Morgan has firmly denied rumors circulating on social media that the U.S. government plans to seize Ripple’s XRP tokens held in escrow for use as part of the country’s national financial reserves. These rumors gained traction after Ripple unlocked 1 billion XRP from escrow in June 2025, worth over $2.2 billion, leading some crypto influencers to think that the government might incorporate XRP into its crypto reserves. However, Morgan responded bluntly to these claims with a clear statement: “No, it won’t”.

The XRP escrow system was designed by Ripple to manage token supply and maintain market stability, with about 1 billion XRP typically unlocked monthly and any unused amount returned to escrow. While a theoretical technical mechanism exists that could transfer escrowed XRP to a government-controlled account, Ripple engineers have noted significant limitations, including the inability to partially transfer tokens, making such a move impractical.

The expectation also ties into ongoing SEC settlement negotiations with Ripple, which involve civil regulatory issues rather than criminal conduct. Legal experts emphasize that government seizure of assets usually requires criminal or national security grounds, which are absent in Ripple’s case. The settlement process continues with reduced fines and lifted injunctions, but the escrow structure remains intact throughout.

So, the rumors of U.S. government seizure of Ripple’s XRP escrow lack factual basis and have been categorically dismissed by Ripple’s legal counsel, reinforcing that the company’s escrow holdings remain secure and unaffected by government intervention.

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