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Debashree Patra
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- Jul 31, 2025 11:32 UTC
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SEC Did Not Drop Ripple Lawsuit -AI Grok’s Viral XRP Claim Debunked
Elon Musk’s Grok AI falsely claimed the SEC dropped its Ripple lawsuit, sparking wild XRP community speculation.
Ex-SEC lawyer Marc Fagel debunked the rumor, urging traders to rely on official court records over AI predictions.
The XRP community went crazy after Elon Musk’s AI chatbot, Grok, claimed that the SEC has officially dropped its appeal in the Ripple vs SEC lawsuit. But seasoned former securities lawyer Marc Fagel says the claim is completely false, and warns against trusting AI chatbots for legal updates.
The SEC’s case against Ripple began in December 2020, accusing the company of selling XRP as an unregistered security. Spanning years, the lawsuit became a defining moment for the crypto industry, which had suffered over $15 billion in losses in just four years due to its ripple effect across markets.
Grok’s Big Claim — and the Community Buzz
The drama unfolded when an X user shared a conversation with Grok in which the chatbot confidently stated:
“The U.S. Securities and Exchange Commission (SEC) dropped its lawsuit against Ripple.”
With the case having dragged on for years, many XRP holders saw this as the breakthrough they had been waiting for. Social media buzzed with speculation that a settlement was finally in place, potentially ending one of crypto’s most high-profile legal battles.
Back in March, GrokAI gave a similar prediction that XRP, which had jumped to $2.55 after a 10% spike, could keep rising. Analysts saw it reaching $2.05 to $5.81 in 2025, while some X users dreamed of $6.99 or even $10 if ETF hype and adoption picked up. GrokAI said hitting $26 by 2030 was unlikely, but getting to $5 or more in the next year was possible if the momentum stayed strong.
Marc Fagel Steps In with the Facts
Fagel, a former SEC lawyer who has closely followed the case, quickly debunked the rumor. He confirmed that neither Ripple nor the SEC has filed to dismiss their appeals. According to him, internal legal processes could take up to two months, and any real development will appear publicly in the Court of Appeals docket for everyone to see.
He even shared the docket link, telling the community to rely on official legal records rather than AI speculation. His warning was blunt:
“Don’t rely on Grok for complex legal matters. Grok doesn’t understand litigation at all.”
What’s Next for the Ripple vs SEC Battle?
While some believe both parties might dismiss their appeals by the August 15 status report deadline, Fagel stressed that the date isn’t directly tied to a settlement. However, he does think there’s a strong chance both sides could voluntarily dismiss before mid-August.
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FAQs
No, the SEC has not dropped its lawsuit against Ripple. Claims from AI chatbot Grok were debunked by former SEC lawyer Marc Fagel, who confirmed no official dismissal filings exist.
The case could see developments by August 15, but no confirmed end date exists. Both parties may dismiss appeals, but no settlement has been officially filed yet.
As of now, no appeal has been dropped. The next key date is August 15, but any official updates will appear in the Court of Appeals docket first.
Yes 
No 
