David Schwartz, a co-creator of the XRP Ledger and Ripple‘s CTO Emeritus, publicly addressed accusations on X regarding his sale of XRP tokens. Responding to online claims that he has been offloading his holdings and doubts about XRP’s investment value, Schwartz disclosed that he paid $1.7 million in capital gains taxes after recent XRP transactions.
Schwartz reveals details of XRP sales and holdings
Schwartz stated that in 2025 he sold roughly 2.5 million XRP, the majority of which he received as bonuses from his work at Ripple in 2020 and 2023. This disclosure was accompanied by a snapshot of his tax bill, aiming to counter criticisms about his trading activities and transparency.
At the height of his holdings, Schwartz said he controlled approximately 26 million XRP. By August 2026, his balance had fallen sharply to only 2 million, a reduction of 92%. This drawdown was largely from selling on the open market, though some tokens were given away or transferred as gifts.
Schwartz began selling portions of his XRP holdings when the token reached $0.10. He revealed that he never expected XRP to surpass $0.25 and applied similar caution to other cryptocurrencies in his portfolio. For example, he sold his entire 40,000 ETH position at $1.05 per token, missing out on future gains as prices soared.
Describing his mindset, Schwartz explained that his risk aversion led him to create a rule with his wife: sell a set portion of their assets each time prices hit a new all-time high. The approach, he noted, provided peace of mind rather than seeking maximum profit.
Schwartz addressed claims that he should have held his assets for the long term, emphasizing his distaste for excessive risk and his preference for stability over speculation. He noted that contrary to the commonly praised strategy of “diamond hands,” he prioritized liquidity and reliability.
Major shift into Ripple stock
Looking beyond XRP and other cryptocurrencies, Schwartz said he moved most of his wealth into Ripple shares. Although these private company shares are illiquid and not as easily tradable as tokens, they offer him a direct stake in Ripple’s success while reducing his exposure to volatility in the crypto market.
He indicated that these decisions have been guided by a desire for financial security, rather than capitalizing on speculative rallies.
Schwartz expressed regret about missing potential gains, remarking, “Obviously, I wish I hadn’t done those things,” after selling large crypto holdings before their dramatic appreciation.
As Schwartz’s financial exposure to fluctuating token prices declined, he noted that his stress around market swings also faded, allowing him a greater sense of stability.
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