Former Ripple co-founder Jed McCaleb halted XRP sales. There is speculation that McCaleb could also face legal action as a result of the lawsuit he filed against the SEC.
The SEC lawsuit Ripple made public shortly before Christmas. It remains the dominant issue in the market, alongside the Furious rise in the price of Bitcoin. After stopping trading with numerous exchanges and crypto mutual funds XRP in recent days, Ripple Labs is also reacting to the deal with Jed McCaleb.
As Leonidas Hadjiloizou, a respected member of the XRP community, observed, on December 24, No XRP sale by McCaleb occurred for the first time. The XRP expert wrote via Twitter:
“UPDATE: JED’S WALLET TACOSTAND DID NOT SEND ANY XRP FOR SALE TODAY. UNDER THE AGREEMENT BETWEEN RIPPLE AND JED, RIPPLE CONTROLS THE RELEASE OF HIS OWN XRP IN ACCORDANCE WITH THE ACCRUAL AGREEMENT.”Leonidas Hadjiloizou
“Ripple had to stop selling, and it also affected Jed’s sales.”
A day later, on December 26, Hadjiloizou tweeted that there had been no XRP sale by the previous one. Co-founder of Ripple known addresses:
“THERE’S NO JED SALE TODAY. THE SECOND DAY IN A ROW. WHAT I CAN’T WAIT TO SEE IS THAT RIPPLE WILL MAKE ITS JANUARY XRP RELEASE IN A WEEK.”
McCaleb could face consequences because of XRP sales
According to hadjiloizou, the apparent reason for the stop in sales may be the lawsuit he filed against the SEC. Ripple was announced on December 21. So the SEC complaint is not only against Ripple Labs, but also two co-founders, Brad Garlinghouse and Chris Larsen. So one Twitter user asked the XRP expert if McCaleb would be afraid of being sued if he sold XRP.
McCaleb is also a Ripple co-founder and has sold XRP, just like Larsen and Garlinghouse. Hadjiloizou replied:
IT COULD HAVE BEEN. BUT DON’T FORGET THAT RIPPLE CONTROLS THE RELEASE OF HIS XRP.
In early December, when the XRP price rose above $ 0.60 and trading volume reached new record highs, McCaleb’s sales set new records. The Ripple co-founder sold 9.9 million XRP a day for a week, McCaleb managed to sell 29.5 million XRP on December 06. In the first week of December, the total amount was well over 200 million XRP.
Jed McCaleb received $ 9 billion when he left Ripple Labs, CNF reported. To prevent the market price of XRP from falling, the two sides reached a renewed agreement following a breach in February 2016. Accordingly, McCaleb had to donate 2 billion XRP to a charity of his choice (“DAF”). The remaining XRP will be held in a surveillance account.
Certain rules have been set for this. For example, the former Ripple co-founder is allowed to sell a maximum of 0.5% of the average daily volume of XRP with DAF. This quota increased to 0.75% in the second and third years and to 1% in the fourth year. After the fourth year of the deal, McCaleb and DAF could sell 1.5% of the average daily volume each day.