Ripple Co-Founder, Jed McCaleb, Resumes Selling Spree; Dumps 28 Million XRP in 24 Hours
Ripple's co-founder Jed McCaleb is back selling a boatload of XRP. The last time he cashed out of his XRP stash was 25 days ago. Could this be related to the SEC suit?
Jed McCaleb, one of Ripple Labs’ founders, has been dumping millions of his XRP holdings of late. The former Ripple executive appears to be cutting ties with XRP, as Ripple gears up for a legal battle with financial regulators in the U.S.
Jed’s Selling Spree
Earlier this week, crypto researcher Leonidas Hadjiloizou shared on Twitter that Jed McCaleb, one of Ripple Labs’ c-founders, had sold $28.9 million worth of the asset in a single day.
McCaleb had paused on his XRP sales for 25 days and many assume it's related to the SEC’s suit. However, the co-founder is forging ahead.
To be fair, this isn’t the first time McCaleb will put a pause on a mass XRP selloff. As Hadjiloizou pointed out, the Ripple co-founder has sold many of his assets in the past, although most of his pauses happened due to charity purposes.
The researcher added that McCaleb was in the process of selling another $2.9 million in XRP.
The co-founder has so far been on a significant selling spree. According to a report from Whale Alert, McCaleb sold off 1.2 billion XRP throughout 2020 at an average price of $0.34 per coin. That amounts to $408 million. The sum reportedly represents 27 percent of McCaleb’s XRP holding, which he keeps in a settlement account with Ripple Labs.
McCaleb ramped up his XRP sales in 2020, offloading as many tokens as he did between 2014 and 2019.
A Landmark Case
McCaleb co-founded Ripple Labs with Brad Garlinghouse and Chris Larsen in 2012, a year before the company launched XRP in an Initial Coin Offering (ICO). He served as Ripple Labs’ technology chief until 2014 when he left to help found the Stellar Development Foundation.
The SEC's suit against Ripple alleges that the ICO constituted an unregistered securities offering and that XRP itself should be classified a security.
The SEC also accused Garlinghouse and Larsen of having sold over $600 million in XRP tokens without reporting their haul. While the suit didn’t mention McCaleb, these sales could put him on the agency’s radar.
For now, it’s unclear how the SEC and Ripple Labs legal battle will play out. Many expect the SEC to emerge victoriously and have been carefully cutting ties with XRP to protect themselves. As for Ripple Labs, the company is hoping that the Biden administration will help its cause.
In a recent blog post, Stu Alderoty Ripple Labs’ general counsel, explained that he believed the Biden administration would prioritize crypto regulation over its first term.
“Intelligent, well-thought-out regulations communicated effectively and uniformly applied can help level the playing field and unleash innovation and further mainstream adoption here in the U.S.,” the attorney said.