David Schwartz, former chief technology officer of Ripple and a co-creator of the XRP Ledger, has disclosed significant reductions in his personal cryptocurrency assets. Schwartz revealed that his XRP holdings have decreased from a previous peak of roughly 26 million to just 3 million XRP, indicating an 88% drop. His Ethereum reserves have fallen even more sharply, with only six ETH remaining out of an earlier reported 40,000. Similarly, he reported that his Bitcoin position dropped from around 1,500 BTC to just one.
Major asset reductions and tax implications
Schwartz shared additional details about how these sales impacted his finances. He reported that sales of approximately 2.5 million XRP in 2025 generated a capital gains tax liability of $1.7 million. The sharp decreases in his crypto positions, including a near-total reduction of his Ethereum holdings, reflect a substantial shift in his investment portfolio.
Explaining his approach, Schwartz stated that he does not make ad hoc trading decisions but instead follows structured advance written trading plans developed with the help of legal counsel. These plans are designed, he said, to manage risk and ensure compliance, rather than pursuing aggressive speculative opportunities.
Schwartz noted that his sales were guided by advance written plans created with legal assistance, focusing on minimizing risk rather than maximizing possible returns.
He emphasized that his individual transactions should not be conflated with Ripple’s own corporate token sales, distinguishing his personal financial strategy from the company’s operations. While Schwartz’s comments have reignited long-running speculation about insider selling, he reiterated that his personal disposal of tokens is not indicative of Ripple’s corporate strategy or outlook.
Rationale for divesting—focus on risk reduction
Schwartz cited a longstanding preference for avoiding significant financial risk as the primary driver behind these sales. He referenced an agreement with his wife to systematically sell portions of his cryptocurrency whenever prices set new record highs, rather than trying to time market peaks precisely.
This cautious approach, he explained, helped him secure profits during periods of rapid market appreciation, though it sometimes meant missing out on higher valuations achieved later. Schwartz acknowledged that this method has affected his ability to capture maximum upside, but said he remains comfortable with the outcomes.
He highlighted that his risk management strategy often prioritized financial stability over larger potential gains, saying he found reassurance in consistent profit-taking rather than seeking to hold through volatile cycles.
Notably, Schwartz’s public stance contrasts with some of his previous optimistic statements regarding XRP’s future, underlining the complexity of balancing personal risk tolerance with broader market potential.
Equity position in Ripple remains unchanged
Despite the dramatic reduction in crypto holdings, Schwartz confirmed that he continues to own equity in Ripple. Unlike XRP tokens, Ripple stock represents a direct ownership interest in the private company. This distinction has become increasingly relevant following Ripple’s $750 million share buyback, which valued the firm at $50 billion.
Schwartz explained that holding Ripple shares is fundamentally different from holding XRP, since stockholders receive corporate rights and benefits that do not apply to token-holders. He also emphasized that his strategic asset adjustments should not be misconstrued as a loss of faith in XRP’s core technology.
He has frequently defended the XRP Ledger’s technical design, highlighting its decentralization and transaction settlement capabilities, even as his personal exposure to the asset has declined.
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