Ripple co-founder Chris Larsen is facing scrutiny after on-chain data revealed he moved 50 million XRP, worth approximately $175 million, across multiple wallets between July 17 and July 23, 2025. The timing of these transfers, coinciding with a recent surge in XRP-related scams, has fueled speculation and debate within the crypto community.

According to blockchain investigator ZachXBT, two of the four addresses that received the XRP were linked to crypto exchanges or third-party services. Specifically, 30 million XRP and 10 million XRP were sent to these addresses, respectively. The remaining 10 million XRP was split evenly between two new wallets, each receiving 5 million XRP. Despite these outflows, wallets tied to Larsen still hold over 2.81 billion XRP, which is valued at over $8.4 billion at current market prices.

The movement of such a significant amount of XRP has triggered sell-off fears, particularly as roughly $140 million of the transferred XRP reportedly ended up at crypto exchanges and service platforms. Analysts suggest that large exchange inflows can often lead to sudden sell-offs or planned liquidations. While Larsen has not publicly commented on the transfers, the scale of the move has led to concerns about potential price pressure.

XRP's price has exhibited some weakness recently, falling below $2.20 after breaking key resistance levels. The market is now closely watching to see if the $140 million in XRP will be sold on open markets, which could potentially drive the price further down. The news of Larsen's transfers has already impacted market sentiment, with XRP's 24-hour volume spiking and social media buzzing with speculation and mixed emotions.

Adding to the complexity of the situation, Ripple executives have issued renewed warnings about a surge in XRP-related scams. Ripple CEO Brad Garlinghouse cautioned the community about impersonators using YouTube to promote fake giveaways and phishing campaigns. These scams often involve deepfake videos and fraudulent airdrops that trick victims into revealing their wallet credentials, leading to asset theft. Ripple's official X account has emphasized that neither Ripple nor its executives will ever ask users to send them XRP and urged the community to remain vigilant.

The convergence of these events – the large XRP transfer by Larsen, the surge in XRP scams, and the recent price volatility – has created a sense of unease among investors. The crypto community is closely monitoring the situation, awaiting further clarification and assessing the potential impact on the XRP market.