Ripple Labs Locks 700 Million XRP in Escrow Post-SEC Lawsuit Resolution
Ripple Labs has made a major escrow move with over 700 million XRP locked in, the first since its US SEC resolution.
Notably, this occurred weeks after company CEO Brad Garlinghouse disclosed the resolution of its lawsuit with the US Securities and Exchange Commission (SEC).
It is worth noting that Ripple Labs operates a structured escrow program developed to regulate and manage the availability of XRP in the market. For context, Ripple releases 1 billion XRP each month, which is used for institutional sales, operational expenses, and liquidity support.
Furthermore, Hadjiloizou disclosed that Ripple Labs continues to hold several billion XRP outside of escrow, giving the company strategic control over the token’s availability. Notably, the decision to lock funds rather than release them immediately could have implications for the XRP market.
With the legal dispute finally over, reports say Ripple Labs Inc. is working to strengthen its market position and follow regulations. For many experts and crypto influencers, the case has formed a precedent in the market, raising concerns and debates on digital asset rules.
