Ripple co-founder and former Chief Technology Officer (CTO) Jed McCaleb received $ 420 million worth of XRP from Ripple. quotation in real time), as part of an agreement concluded a few years ago. The transfer is part of a multi-year process that will see McCaleb slowly divest his holdings in XRP.
He made a lot of money
When McCaleb left Ripple, he had signed an agreement not to immediately dump all of his holdings in XRP. This was to ensure that the sale would not affect the XRP market. The current transfer is part of a deal in which Ripple transfers an amount of XRP to McCaleb on a monthly basis.
The sales model has changed over time. Currently, McCaleb sets aside a portion to sell each week and sells it over seven days. Last week it sold nearly $ 17 million. He has about $ 652 million left to sell in total.
Throughout 2020, McCaleb sold XRP for $ 400 million, one of the most significant amounts to date. This is because the price of XRP is on the rise, making McCaleb one of the richest people in cryptocurrencies. It is believed to have a net worth of over $ 2 billion.
McCaleb left Ripple in 2014 and went on to create Stellar Lumens. If McCaleb hadn't been forced to sell his XRP holdings over time, he wouldn't be anywhere near as rich as he is today. It is believed to have sold 1,2 billion XRPs since 2014 and currently owns around 2,5 billion tokens.
McCaleb is selling the asset at a time when Ripple is facing a lawsuit from the United States Securities and Exchange Commission (SEC) for alleged securities infringements. It is unclear in which direction the case will go, but the time for the sale is particularly ripe for the former CTO.
Cause still ongoing, with a positive development for Ripple
Ripple's lawsuit for alleged securities violations has been under discussion in the city. The SEC claims it illegally earned $ 1,3 billion through an unregistered stock offering. Ripple has firmly denied all allegations and is vigorously fighting the case.
The company recently won a motion to prevent the SEC from accessing documents on the basis of attorney-client privilege. The lawsuit continues, with the cryptocurrency market pending a decision. The XRP token does not appear to have been much affected by the ongoing development, reaching strong price points in recent months.
CEO Brad Garlinghouse has even hinted that the public may go public at some point. This is currently prevented by the ongoing case, which is expected to see a conclusion very soon.