Ripple co-founder finally empties XRP wallet after 8-year dumping spree
After eight years and $3 billion liquidated, Ripple co-founder Jed McCaleb has finally finished dumping his bags of XRP onto the world.
McCaleb, estimated by Forbes to be worth somewhere in the region of $2.2 billion, brazenly sold off the majority of his XRP after he gained knowledge in late 2020 that the SEC designated Ripple’s ICO as an illegal securities offering. Despite a lawsuit regarding Ripple’s federal misconduct, he sold anyway.
McCaleb left Ripple in 2014 and founded a direct competitor to its international remittances business called Stellar (XLM). Despite his departure, he benefited from years of Ripple’s marketing about its banking and international remittances activities regardless of the fact they’ve consistently underdelivered.
Revealingly, Stellar now simply lists McCaleb as Chief Architect. In 2019, a reshuffling of Stellar’s leadership team saw McCaleb ousted from his CEO position in favor of Denelle Dixon.
Read more: After dumping Ripple, MoneyGram cozies up to Jed McCaleb’s Stellar
McCaleb’s final XRP sale came from his wallet labeled ~tacostand. He transferred his final 1.1 million XRP out of ~tacostand on July 17, 2022. Finally, he sent an “account delete” transaction to remove the account on the XRP Ledger.
McCaleb’s eight years of liquidations represent 18.6% of XRP’s circulating supply today.
Jed McCaleb liquidated XRP which remains 80% below all-time highs
The SEC alleges that Ripple and McCaleb’s fellow co-founders, Chris Larsen and Brad Garlinghouse, violated federal regulations and withheld information from investors that socialized massive losses. Its lawsuit carries a headline figure in the billions that could bankrupt Ripple, Larsen, and/or Garlinghouse, depending on the court’s determination.
Ripple is currently contesting the lawsuit. It could take another year for a judge to make a final determination.
Litigation is proceeding steadily. Last week, for example, a judge granted Ripple’s request for SEC documents related to a speech by former Director Bill Hinman. In that speech, Hinman stated his opinion that Ethereum offerings in 2018 were not a security. Protos reported on Hinman’s alleged, multi-million dollar conflicts of interest while giving that speech.
Selling XRP and building a competitor in XLM has made McCaleb a billionaire. At the end of eight years of selling, McCaleb has received 708 BTC ($16 million) and over $3 billion in fiat for his staggered sales of XRP.
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