Ripple CEO Brad Garlinghouse Under Fire: Accusations from Swan Co-Founder
On January 29, Brady Swenson, co-founder of the Bitcoin-centric financial services platform Swan, launched a series of serious allegations against Ripple’s CEO, Brad Garlinghouse, via X. Swenson did not mince words, boldly stating, “Corrupt Brad … No, Brad Garlinghouse is not a man of integrity. His actions over the years show a pattern of misleading investors, pushing exaggerated narratives, and profiting at others’ expense.”
Allegations of Insider Dumping
Swenson’s accusations began with claims of insider dumping, where he alleged that “Ripple executives, including Garlinghouse, dumped billions of XRP on retail investors” while promoting overly optimistic predictions for the token’s future. He described these actions as “classic pump-and-dump behavior,” suggesting that the sales were strategically timed to align with Ripple’s marketing campaigns.
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Debate Over XRP Adoption Claims
Swenson also targeted Ripple’s claims regarding XRP adoption. He criticized the company for suggesting that major banks were actively using XRP, arguing that most financial institutions were only utilizing RippleNet’s payment infrastructure, not XRP itself. Swenson described this portrayal as “Misleading at best, deceptive at worst.”
SEC Lawsuit and Political Framing
Swenson discussed the ongoing SEC lawsuit, criticizing Garlinghouse’s portrayal of the regulatory action as politically motivated. Swenson accused Garlinghouse of rallying XRP holders in defense of Ripple, thereby diverting attention from the SEC’s accusation of selling unregistered securities. “The SEC sued Ripple for selling unregistered securities, and instead of taking responsibility, Garlinghouse framed it as a political attack to rally XRP holders behind him,” he asserted.
Decentralization and Market Manipulation
Swenson questioned Garlinghouse’s claims regarding XRP’s decentralization, noting that “Ripple owns the majority of supply and can manipulate the market at will,” a structure he believes contradicts true decentralization. He further accused Garlinghouse of overpromising and underdelivering, alleging that he has made bold claims about XRP’s future that have never come to fruition, while insiders benefit financially at the expense of retail investors.
Amidst National Developments in Crypto Policy
Swenson’s allegations have emerged amidst significant developments in the crypto industry. With President Donald Trump signing the first-ever crypto executive order to establish a “national digital asset stockpile,” the crypto sector is abuzz with speculation about the future of digital assets, including Bitcoin and XRP. In the background, Garlinghouse has been active, lobbying for XRP’s inclusion in this strategic reserve, raising questions about his motives and integrity.
Ripple’s Lobbying Efforts and Crypto Policy
Garlinghouse has defended Ripple’s lobbying initiatives, asserting that they are not opposed to a Bitcoin-centric reserve but aim to support a broader crypto reserve strategy that includes Bitcoin. He emphasized that Ripple’s actions align with President Trump’s campaign promise to enhance American technology companies, suggesting that their lobbying could create a more inclusive policy environment for digital currencies.
Community Debate on Crypto Reserves
This has sparked a debate within the crypto community, with Bitcoin advocates like Pierre Rochard and Ryan Selkis viewing Ripple’s actions as a hindrance to a Bitcoin-focused reserve. They argue that Bitcoin’s decentralized nature should make it the primary focus of any strategic reserve, whereas XRP’s centralization and Ripple’s control over its supply raise concerns.
As of now, Garlinghouse has not responded directly to Swenson’s latest accusations. At the time of writing, XRP is trading at $3.10.
