Ripple Releases 500 Million XRP From Escrow Fueling SEC Settlement Rumor

California-based blockchain company, Ripple, has made headlines today after it unlocked a staggering amount of XRP from its escrow wallet. According to reports, the tech giant released 500 million XRP coins into circulation. This has fueled the speculations about a potential settlement between itself and the Securities and Exchange Commission in the ongoing legal battle.

The price of XRP has taken a notable hit since the release, dropping by over 5% to trade below the crucial $0.6 mark. Meanwhile, this is not the only XRP transfer initiated by Ripple in the last 24 hours. Let us see in detail below.

Ripple Moves 500 Million XRP From Escrow

Whale Alert, a popular crypto large transaction tracker, first reported the transfer earlier today. According to its report, Ripple moved 500 million XRP coins in two separate transactions. The first one unlocked 300 million XRP, valued at approximately $178.6 million, while the second one had 200 million coins, worth $119 million, released.

🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 300,000,000 #XRP (178,562,099 USD) unlocked from escrow at unknown wallethttps://t.co/lXf5GQvVbX

— Whale Alert (@whale_alert) August 2, 2024

Recall that the SEC is asked a $1 billion penalty from Ripple, but the blockchain company stressed that it is not willing to pay more than $10 million. While the recent XRP transfer has been speculated to be related to the settlement, it is important to note that Ripple always releases 1 billion XRP from escrow at the start of every month. Thus, the recent unlocking is part of the scheduled release for August.

Meanwhile, Ripple made other significant transfers over the last day. Per Whale Alert data, the blockchain firm previously locked 800 million XRP coins in escrow, just a few hours before the release.

Whales Dump 75 Million XRP to Major Exchanges

At the same time as Ripple unlocked XRP from escrow, other whale investors dumped a massive 75 million XRP to popular centralized exchanges. According to reports, the unknown large investors shifted the aforementioned amount of XRP in three distinct transfers.

The first whale moved 27,450,000 XRP (worth $15.9 million) from an address labeled ‘unknown’ to the Bitstamp exchange. Shortly after, the same whale shifted 28,000,000 XRP (valued at $16.2 million) to the Mexico-based Bitso exchange. The volume and frequency of XRP sent to these two exchanges have raised conjecture about the entity behind it.

Moreover, about 7 hours ago from press time, another whale transferred 20 million XRP coins from another anonymous wallet to the BitGet exchange. The total value of XRP dumped amounts to $43.1 million.

Lawyers Calm Ripple SEC Settlement Rumor

Meanwhile, prominent lawyers in the crypto community have weighed in on the rumor circulating about an imminent settlement between the two entities. Notably, Bill Morgan, a pro-XRP lawyer said on X (formerly Twitter), that a settlement between Ripple and the SEC is “unlikely.” Additionally, he said that if in any case it eventually happens, then it will be a compromise rather than a victory for Ripple.

Another figure Marc Fagel, a former SEC lawyer said that the closed-door meeting scheduled by the SEC has nothing to do with its case with Ripple. He also stressed that a settlement between Ripple and the regulatory watchdog might not happen because neither party will agree to settle.

As the matter unfolds, the crypto community is closely watching to see the outcome of the 4-year long battle between both organizations.