Former Ripple CTO David Schwartz Discloses 2025 XRP Sales and Risk Aversion

David Schwartz, co-creator of the XRP Ledger and former chief technology officer of Ripple, stated on Nov. 9 that he has not purchased $XRP in a "long time" and has liquidated nearly all of his cryptocurrency holdings due to personal risk aversion ¹. Schwartz also disclosed that he offloaded roughly 2.5 million XRP during 2025, incurring a $1.7 million capital gains tax liability ¹.

Schwartz, who stepped down as Ripple CTO in September 2025 after a seven-year tenure, stated that his remaining equity in Ripple presents higher risk exposure than he prefers ¹. Secondary shares of Ripple were valued at nearly $94 on Nasdaq Private Market, marking a 22% drop over the trailing year but a 237% increase across a two-year horizon ¹. At the time of writing, XRP traded around $1.05. Schwartz noted that the tokens liquidated in 2025 originated from allocations received in 2020 and 2023, preceding the asset's climb to $3.65 in 2025 ¹.

Pre-Scheduled Sales and Historical Allocations

Addressing trading mechanics, Schwartz explained that his transactions are governed by a formal written sales plan established with legal counsel at least 30 days ahead of execution ¹. The structured schedule is designed to preempt allegations of trading on material non-public information, such as undisclosed XRP Ledger software bugs ¹. The remarks followed public discussions concerning the Internal Revenue Service sending Letter 6174 notices to digital asset investors ¹.

Schwartz helped launch the XRP Ledger in 2012 alongside Jed McCaleb and Arthur Britto ¹. While full historical disposals across early leadership remain obscured—in part because Ripple developers erased the ledger's initial 32,569 blocks during early infrastructure changes—Schwartz previously noted that his holdings peaked at 26 million XRP ¹. Market participants have previously tracked massive token movements, including instances where XRP exchange inflows climbed significantly amid shifts in whale distribution patterns ¹.