Ripple Co-Founder Moves $140M in XRP to Exchanges Amid Historic Rally

Ripple co-founder Chris Larsen has reportedly moved an estimated $140 million worth of XRP to exchange-linked wallets over the past week, according to blockchain analyst ZachXBT.

The transaction activity, which began on July 17, has coincided with a sharp rally in XRP, now trading around $3.22 after peaking at $3.64 just days ago.

The sudden offload has triggered speculation about the motivations behind the timing, as the crypto community watches closely for signals of insider moves during one of XRP’s most significant price surges in years.

Legacy Wallet Activity Returns After Two-Year Silence

According to ZachXBT’s tracking, Larsen transferred 50 million XRP, worth approximately $161 million, from a known wallet in a series of staggered transactions. Roughly $140 million of that total was moved into three addresses linked to major centralized exchanges.

An additional 10 million XRP was sent to two brand-new wallets, each holding 5 million XRP and previously inactive. These silent wallets sparked further interest due to their timing and lack of transaction history, raising questions about future intentions or additional liquidation strategies.

This movement marks one of the largest insider-linked transfers of XRP since Larsen’s previous transactions in 2022. While no official statement has been made by Ripple or Larsen regarding the motive, analysts and on-chain sleuths view such transfers as potential early indicators of strategic sell-offs or portfolio rebalancing.

Sell-Off Fears Surface as XRP Holds Steady

Larsen’s large transfers came shortly after XRP hit an all-time high of $3.65 on July 18, driven by bullish market sentiment and Ripple’s expanding institutional footprint. Though the token has slightly cooled off to $3.22, XRP remains up over 419% year-on-year.

As of Friday, the token is the third-largest cryptocurrency by market capitalization, now valued at over $190 billion, according to CoinMarketCap data. In the last 24 hours alone, XRP saw $15.5 billion in trading volume, with major platforms like Binance and Coinbase noting elevated activity.

Some market watchers have raised concerns that the timing of Larsen’s sell-off could signal short-term profit-taking or diminishing confidence among insiders, though others argue that individual wallet moves should not be overstated during a macro uptrend.

Ripple and XRP Surge Forward

The XRP rally reflects more than just speculative momentum. Over the past year, Ripple has secured multiple high-profile partnerships aimed at boosting adoption of its cross-border payment solutions. These include collaborations in Latin America, Asia, and the Middle East, regions where Ripple’s On-Demand Liquidity (ODL) platform is gaining traction.

Institutional interest in XRP has also risen following favorable legal developments. Earlier this year, market confidence surged after analysts hinted that a long-running lawsuit between Ripple and the SEC might soon be resolved. While no final decision has been handed down, optimism around regulatory clarity has helped push XRP back into mainstream investor focus.

A Divided Market Response

The crypto community remains split on the implications of Larsen’s move. Some argue the co-founder is simply exercising his rights as a token holder, especially amid favorable market conditions. Others view the transfer with caution, recalling previous SEC scrutiny of executive XRP sales.

In 2020, Larsen and Ripple CEO Brad Garlinghouse were accused by the Securities and Exchange Commission of selling unregistered securities. At the time, Larsen was alleged to have sold over $450 million in XRP between 2017 and 2020, alongside Garlinghouse’s $150 million in personal sales. Both denied wrongdoing, and the case has become one of the most watched legal battles in crypto history.

While Larsen’s recent activity does not appear to breach any current regulatory constraints, the timing has reopened debate about insider influence in token economics. Critics argue that concentrated holdings among founders pose risks to decentralized ecosystems, while supporters say early contributors deserve liquidity opportunities.

Looking Ahead

Even though there’s still been controversy, XRP continues to perform strongly, aided by a broader crypto market rebound. Bitcoin remains dominant with a 60% market share, and total crypto capitalization has climbed to $3.96 trillion.

Ripple has not issued any formal comment on Larsen’s recent transactions, nor has the co-founder shared intentions publicly. For now, the market seems to be taking the moves in stride. XRP remains well above its early-2024 trading range, and the elevated exchange activity has not significantly derailed bullish sentiment.

Still, as XRP stays above $3 and more big investors show interest, people are starting to pay closer attention to what insiders are doing. It’s not clear yet if Larsen’s transfers are just a one-time cash-out or the start of something bigger.

For now, all eyes remain on the wallets.