Former Ripple Director Claims Ripple is About to Burn All XRP Held in Escrow Wallets

Ripple’s Former Director, Matt Hamilton, has made a surprising revelation, suggesting that Ripple has the ability to burn all the XRP tokens held in its escrow wallets. This revelation adds a new layer of complexity to Ripple’s legal battle with the SEC.

Hamilton, who previously served as Ripple’s Principal Developer Advocate, shared his perspective on the ongoing litigation. He proposed that Ripple, with its technological expertise, could render its future escrow funds virtually untouchable by disabling the master key for the accounts designated to receive the escrowed tokens.

This concept of “burning” XRP introduces an innovative dynamic, effectively rendering the tokens unusable, even to Ripple itself.

The idea of burning XRP tokens came to the forefront following the SEC’s request to destroy LBRY Credits (LBC) tokens in a recent lawsuit. This sparked a debate within the XRP community, raising questions about whether Ripple could be compelled to burn the XRP held in its escrow.

Ripple’s CTO, David Schwartz, joined the discussion, highlighting that while neither the court nor the SEC may have direct authority, a consensus among XRPL validators could enforce such action.

Bill Morgan, a lawyer supporting XRP, provided further insights, emphasizing that a court order would not automatically bind XRPL validators, necessitating a legal hearing for enforcement. This aligns with Ripple CEO Brad Garlinghouse’s previous statement in April 2021, suggesting the consideration of burning XRP tokens in specific scenarios for the benefit of the broader XRP ecosystem.

As Ripple navigates the complexities of its legal battle, the potential decision to burn XRP tokens adds a new dimension to its ongoing saga.