Former Ripple chief technology officer Jed McCaleb has received over 291 million XRP from the company despite the lawsuit with the SEC that might be going on behind closed doors.
July 8, 2021, | AtoZ Markets – Last week, 1 billion XRP was released, which was previously held in Ripple vaults. It has been reported that the XRPs released will be sent to some cryptocurrency exchanges, as well as partner banks and institutions for the purpose of providing liquidity.
However, according to Whale Alert, the Ripple company showed that almost a third of the coins released were transferred to a single account.
9 billion XRP compensation melts out
Jed McCaleb, who was among the Ripple partners during the establishment phase, later left the company due to some disagreements with the other partners of the company, and then became one of the most valuable cryptocurrencies in the market. He had installed the Stellar Lumen (XLM) platform. In the agreement made during McCleb’s departure from the company, it was decided that 9 billion XRP compensation would be paid to the successful computer software developer.
However, the Ripple company preferred to divide this price into installments instead of paying it all at once. Predicting that Jed McCaleb will sell all of its XRPs, the company announced that it divided this compensation into installments to maintain liquidity.
The platform called Whale Alerts, which reports loaded crypto money transfers, announced the 1 billion XRP released by Ripple last week. The same platform announced today that 291 million XRP was transferred from Ripple accounts to an account known to belong to McCaleb, and stated that 10 million XRP was sold from McCaleb’s account after the transfer.
McCaleb’s impact on XRP price
Some crypto experts argue that McCaleb’s constant selling has had a negative impact on the XRP price. The Steller founder has been making regular sales since earlier this year. Analysts, who think that these sales have negatively affected the Ripple price, expect McCaleb’s account to run out.
However, after the last transfers, 630 million XRP remained in the account of the successful computer programmer. A group among the members of the Ripple community predicts that McCaleb’s account will be reset in September if sales continue with the same average.
SEC vs. Ripple lawsuit might be going behind closed doors
The Ripple community, which has frequently made statements about the SEC case, has been away from making a statement about this issue for a while. Martin Valk, who has been following the issue closely, thinks that this is due to some developments in the litigation process. Considering that there are some developments that have not been leaked to the press, Valk mentions that the case may be progressing with some agreements that took place behind closed doors.
The fact that the Ripple community, which has frequently been the subject of the case agenda, especially after the hearings held last month, stopped providing information about the process, may mean that the press will not be informed until the case is concluded. Despite the secrecy, some sources predict that the case will be settled between August and October.
Defendants, CEO Bradley Garlinghouse, will be defended by Nicole Tatz of the law firm Cleary Gottlieb Steen & Hamilton LLP. Former CEO and Ripple founder Christopher Larsen will be defended by Sarah J. Prostko of law firm Paul, Weiss, Rifkind, Wharton & Garrison.
Think we missed something? Let us know in the comment section below.