Ripple Dumps 120 Mln XRP After SEC Gains Upper Hand In Legal Quandary

XRP News: Ripple’s XRP is holding above $0.50, however, It has observed a noteworthy downturn. Moreover, the XRP community experienced unitability due to a substantial sell-off by Ripple and notable whale activities. With all these concerns playing off, Ripple executed a significant transfer of 120 million XRP tokens recently, intensifying fears of a sell-off amid increased market volatility.

The move comes at a time when the U.S. Securities and Exchange Commission (SEC) gained the upper hand in the Ripple vs. SEC case. The SEC recently won its motion to compel Ripple into providing its financial statements centered around XRP. These updates have aggravated the volatility in the XRP price currently.

Ripple Offloads $120 Million XRP From Reserve

A recent report by Whale Alert, an on-chain tracking platform, highlighted a substantial XRP transaction initiated by Ripple, the parent company. This massive transfer has unsettled the XRP community, sparking speculation of downward pressure on the XRP price amid the recent rebound. According to Whale Alert, Ripple unloaded 120 million XRP tokens, valued at $60.88 million, directing the transaction to an undisclosed wallet.

Whilst, Bithomp data indicates that Ripple’s XRP reserve is currently holding $80 million XRP tokens, equivalent to $40.27 million. Earlier, on February 1, Ripple added 200 million XRP tokens to its reserve, which suggests that it offloaded 60% of the freshly acquired tokens. Adding complexity to the situation, another notable whale transaction has surfaced, reported by Whale Alert.

The whale transaction involved the transfer of 28.85 million XRP tokens, valued at $14.62 million, to Bitstamp, a prominent crypto exchange based in Luxembourg. The transfer, executed via an unidentified wallet, further fuels apprehensions within the XRP community, especially as the crypto has recently climbed back above $0.50.

As of writing, the XRP price was down by 0.84% to $0.5044 on Tuesday, February 6. Ripple’s native crypto holds a market cap of $27.5 billion currently. Whilst, its 24-hour trade volume witnessed a slumped 5.7% to $795.21 million. The recent bearish trend has intensified XRP’s losses as it has lost nearly 6% in the last seven days.

Also Read: 2 Pivotal Reasons Why XRP Price Could Blossom Hitting 25$ In 2024

SEC Wins Motion Against XRP’s Parent Company

Another downturn to current XRP news is the SEC’s triumph over Ripple. Amid the ongoing Ripple vs. SEC lawsuit, the SEC filed a motion in January 2024 seeking the Magistrate Court’s approval, presided over by Judge Sarah Netburn, to compel Ripple to disclose its financial statements for 2022-2023. The regulatory body also sought access to information regarding post-complaint contracts overseeing institutional sales of XRP, along with answers about the extent of proceeds derived from institutional sales of XRP. All these requests have been granted by the U.S. District Court for the Southern District of New York.

Upon the SEC’s request filed in January, the Magistrate Court under the jurisdiction of Judge Sarah Netburn has given consent to compel Ripple from 2022 to 2023. Additionally, the regulatory authorities have sought disclosure of post-complaint contracts governing the institutional sales of XRP and responses to inquiries regarding the amount of proceeds received from such institutional sales. Moreover, the U.S. District Court for the Southern District of New York has duly approved all these requests.

Hence, the regulatory authorities have now allowed the SEC to proceed with its investigation into Ripple’s financial activities and sales of XRP during the specified timeframe.

Also Read: SEC Bags Win Over Ripple’s Financial Statement Dispute