XRP News Today: Ripple Co-Founder Sells $344M XRP as Token Plunges 17% Amid SEC Case Delays

Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC) has taken a backseat to a more contentious question: Is the cryptocurrency giant’s own leadership undermining confidence in XRP? Recent transactions by Ripple co-founder Chris Larsen have triggered sharp price declines and raised fresh concerns about the token’s centralized control. Since January 2025, Larsen has offloaded over 106 million XRP—valued at $344 million—as blockchain data shows recurring sales coinciding with price peaks. These movements, tracked by tools like XRPscan and analyst ZachXBT, have intensified scrutiny from traders and critics who argue such actions contradict the decentralized ethos of blockchain technology [1]. The July 2025 sell-offs, including a $26 million transaction to Coinbase and a $175 million dump the following day, pushed XRP below critical technical levels. On Binance’s 4-hour chart, the token fell from $3.66 to $3.02 as large-scale selling pressure became evident. Retail investors, particularly those holding smaller amounts, faced losses, with social media posts highlighting the impact on traders. Analysts noted shallow liquidity in XRP’s order books, which amplified the volatility [1].

The controversy has sparked a broader debate about Ripple’s governance and transparency. Critics highlight Larsen’s estimated 2.6 billion XRP holdings as a red flag, fueling debates about the company’s stewardship of its native token. Despite recent sales, he remains the largest individual holder, undermining XRP’s credibility as Ripple promotes its own stablecoin (RLUSD), leaving unanswered questions about the token’s long-term relevance [2]. Meanwhile, the SEC’s ongoing legal case against Ripple remains unresolved. While earlier reports suggested the agency might drop its appeal, delays in approving the Bitwise crypto ETF have kept the regulatory spotlight on the firm. The SEC’s stance on XRP’s classification as a security continues to influence market sentiment, with investors watching August 15 as a potential deadline for case closure [3].

Political tensions have further complicated the narrative. A user on Twitter recently claimed that Ripple and its top executives largely supported Vice President Kamala Harris during the 2024 U.S. presidential election, while avoiding support for Donald Trump. The donations have led to division within the XRP community, as a significant portion of the fanbase is believed to support Trump. Some online posts hinted that XRP holders should consider exiting around the $3.50 mark if Bitcoin rises beyond $125,000 [1]. Former SEC lawyer Marc Fagel stepped in to clarify the origins of the Ripple lawsuit, reminding users that the case was filed under the Trump administration by former SEC Chair Jay Clayton, not Gary Gensler. Fagel emphasized that the decision to sue was made weeks before Clayton’s departure, with Gensler assuming the role five months later.

Ripple CEO Brad Garlinghouse has separately warned of rising XRP-related scams, urging investor caution, but his comments have done little to offset the volatility sparked by Larsen’s sales. The token’s struggles contrast with Ethereum’s resilience, underscoring the sensitivity of crypto markets to institutional behavior [1]. As XRP attempts to stabilize, the focus remains on whether Larsen’s actions reflect a strategic shift in Ripple’s approach to XRP reserves or a temporary adjustment. The outcome will likely shape investor perceptions and regulatory scrutiny, with the firm’s ability to balance operational needs and market confidence under intense observation.

Sources:

[1] [Crypto Markets Retreat After Liquidation of $737 Million](https://www.mitrade.com/insights/news/live-news/article-3-983654-20250724)

[2] [Software Dev Sends Important Message to XRP Holders ...](https://timestabloid.com/software-dev-sends-important-message-to-xrp-holders-amid-price-dump/)

[3] [XRP Holders Eye August 15 as Hopes Rise for Ripple-SEC ...](https://thecurrencyanalytics.com/altcoins/xrp-holders-eye-august-15-as-hopes-rise-for-ripple-sec-case-closure-186815)