Ripple CEO Brad Garlinghouse stated he and co-founder Chris Larsen critically thought of shutting the corporate down after the SEC sued in 2020 and distributing Ripple’s XRP holdings to shareholders.
In a KU Hustle interview, Garlinghouse stated they selected to combat as a substitute as a result of closing Ripple would have price a whole lot of jobs. He estimated the four-year authorized battle price the corporate about $150 million. The state of affairs involved Ripple as an organization, relatively than a shutdown of the XRP Ledger or a lack of XRP held by the general public.
We nearly determined to close down the corporate when the SEC sued us. We we have been like uh you understand like the federal government has infinite energy and assets.
The SEC’s August 2025 litigation launch dismissed their respective appeals, resolving the enforcement motion. Nonetheless, the district court docket’s closing judgment remained in impact, together with a $125.04 million civil penalty and an injunction in opposition to Ripple.
Garlinghouse stated Ripple and Larsen had thought of winding down the corporate and distributing its XRP holdings to shareholders on a professional rata foundation. They selected to proceed working and combat the case, a choice Garlinghouse stated preserved a whole lot of jobs however finally price about $150 million in authorized charges.
A company resolution with XRP on the middle
Ripple fairness, XRP held by Ripple, the XRP Ledger, and XRP held by the general public are various things. The plan Garlinghouse described involved dissolving Ripple and distributing the corporate’s XRP holdings to its shareholders. It didn’t suggest that the ledger would shut down or that XRP held by the general public could be transferred or misplaced.
Ripple might have shut down and the XRP Ledger nonetheless would have stored operating. Garlinghouse wasn’t making a name on XRP’s worth or suggesting the community or present holders could be affected by the corporate’s destiny.
Ripple’s XRP reserve gave the corporate a approach out if it selected to close down. As an alternative, management stayed the course, accepting years of litigation and mounting authorized payments in trade for conserving the enterprise alive.
The interview stops wanting saying Ripple’s XRP reserve paid for its protection. What it reveals is the leverage that reserve gave its leaders when the selection narrowed to preventing on or shutting down.
