Ripple Labs, the company behind the XRP cryptocurrency, recently completed its monthly escrow unlock and internal transfers, igniting speculation about a potential settlement with the U.S. Securities and Exchange Commission (SEC).
While the prospect of a settlement may seem far-fetched, recent activity within Ripple’s internal XRP movement suggests this possibility. Ripple’s transactions typically fall into two categories: internal transfers and escrow replenishment.
This month, Ripple transferred a total of 1.1 billion XRP across three of its wallets. Notably, 800 million XRP were subsequently locked back into escrow, suggesting these funds may not be immediately available for sale. Additionally, Ripple retained 300 million XRP in a spendable wallet after the internal transfers.
Following these maneuvers, Ripple unlocked its standard 1 billion XRP from escrow, distributing them across two separate addresses.
Speculation Mounts Over Settlement Talks
The decision to retain a significant portion of XRP in a spendable wallet has fueled rumors of a potential settlement with the SEC. The lawsuit is currently focused on determining appropriate penalties for Ripple’s alleged violation of securities laws through XRP sales.
The SEC is seeking nearly $2 billion in disgorgement, penalties, and interest. Ripple, however, maintains its innocence and proposes a much smaller penalty of $10 million.
The recent transactions could be interpreted as Ripple setting aside funds to prepare for a potential settlement or court-mandated actions. Legal experts believe the final penalty could land somewhere between Ripple’s proposed $10 million and the SEC’s hefty $1.95 billion request.
Ripple Stays Silent, Market Waits
While these recent transactions have sparked speculation, it’s important to remember that Ripple has made no official statements regarding their purpose. The true impact of these movements on the ongoing lawsuit and the XRP market remains to be seen.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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