With the recent unlocking of 500 million XRP from escrow, members of the crypto community are speculating that Ripple may be nearing a resolution to its legal dispute with the SEC.
To provide some context, Ripple has recently released a significant amount of XRP from its escrow accounts. Data from crypto tracking service Whale Alert reveals that the company unlocked 500 million XRP in two separate transactions yesterday. The first transaction consisted of 200 million XRP valued at $123.63 million, while the second transaction involved 200 million XRP worth $183.89 million.
The surprising nature of these transactions has captured the attention of the broader crypto community, as people try to decipher the reasoning behind them. Much of the speculation revolves around the ongoing legal battle between Ripple and the United States Securities and Exchange Commission (SEC).
Some XRP enthusiasts believe that Ripple unlocked these coins to cover its legal fees in the SEC lawsuit. However, others interpret this unexpected move as a sign that a settlement between Ripple and the SEC is on the horizon. Those who subscribe to this theory argue that Ripple intends to sell the coins in order to reach a resolution with the regulatory agency.
Interestingly, a user named @TheJNelsonWay shared a document suggesting that the SEC and Ripple are close to ending their lengthy legal dispute through a settlement. According to the document, the legal counsels for both parties plan to engage in settlement discussions prior to a pre-trial conference scheduled for April 16, 2024.
Another observant user pointed out that the timing of the transaction appeared suspicious, as it occurred just one day after the SEC’s closed-door meeting. Earlier reports indicated that high-ranking SEC officials, including commissioners and their secretaries, attended this meeting. Although the agenda of the meeting was undisclosed at the time, XRP enthusiasts speculated that the SEC might be considering a settlement with Ripple.
In the meantime, the 500 million XRP that was unlocked is part of the 1 billion coins scheduled for release this month. It is worth noting that Ripple had initially released only 500 million XRP from escrow on April 1. Despite the system’s plan to release 1 billion XRP on that day, only half of that amount was triggered. Consequently, the remaining 500 million XRP coins were finally released yesterday, bringing the total amount of XRP unlocked in April to 1 billion.
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