Tuesday, November 5, 2024

Ripple update: 1 billion XRP transfer, SEC could payback $125 million to Ripple if appeal fails

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  • Ripple unlocked 1 billion XRP from its escrow account on September 1, raising concerns among XRP holders. 
  • Pro-crypto attorney Fred Rispoli asked securities lawyers whether. SEC would pay $125 million and statutory interest to Ripple if appeal fails. 
  • XRP dips to $0.55, erases 1.70% value on Sunday. 

Ripple unlocked a large volume of XRP tokens on September 1. The transfer was tracked by Whale Alerts and XRP traders pondered on the impact of the large volume unlock. 

XRP is currently faced with mounting selling pressure and slipped to $0.55 on Sunday. 

What if SEC loses their appeal in Ripple lawsuit

Pro-crypto attorney Fred Rispoli asked a key question to securities lawyers in a recent tweet on X. Rispoli asked whether the SEC would have to pay back the payment remittance firm’s $125 million fine alongwith statutory interest. 

It remains unclear whether the regulator will choose to appeal the ruling in the lawsuit. In the final ruling, Judge Analisa Torres upheld the ruling on XRP’s security status. 

Ripple’s 1 billion XRP unlock

Ripple released 1 billion XRP tokens through its escrow process. The transaction took place in three phases, 500 million, 200 million and 300 million XRP tokens were released. XRP price erased nearly 1.70% of its value as traders digested the news of the transfers. 

On-chain data shows Ripple’s active addresses climbed nearly 17% in a single day on September 1. When combined with the decline in exchange supply, it implies active addresses moved XRP off exchange wallets. This supports a bullish thesis for the altcoin

XRP supply on exchanges and active addresses

At the time of writing, XRP trades at $0.55. 


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