Ripple Chief Technology Officer David Schwartz revealed that he sold losing stocks on Friday to engage in "tax-loss harvesting" - a common strategy to reduce taxable income by realizing short-term capital losses.
He also bought other stocks with similar potential to maintain market exposure. Schwartz said he may repurchase these stocks after 31 days due to IRS regulations (which prohibit repurchasing the same stocks within 30 days to claim tax deductions).
The move came as the U.S. stock market evaporated more than $6 trillion in two days, setting a record for the largest drop in history.
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