Ripple Directs Bitstamp to Freeze Funds of Former Co-Founder Jed McCaleb
Ripple, the so-called decentralized payment network, has frozen funds worth more than US$1 million that belong to the company’s former co-founder Jed McCaleb. Since their initial launch, Ripple has represented themselves to the public as a payment network of “decentralized” gateways that convert different assets or types of payments—such as bitcoin or Paypal—into IOUs tradeable in the Ripple network. On August 1, 2014, Ripple introduced a feature called “Balance Freeze” which allowed the network’s gateways to freeze and prevent funds from being traded, an action that they claimed was....
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Bitstamp has initiated legal action over more than $1m in disputed funds related to the sale of nearly 100m XRP last month. Bitstamp, which operates a Ripple gateway and bitcoin exchange, filed a complaint for interpleader on 1st April in the US District Court in the Northern District of California. Jed McCaleb, the founder of both Ripple Labs and Stellar, and two of McCaleb's family members were named in the complaint. The $1,038,172 in disputed funds were used by Ripple Labs to purchase 96,342,361.6 XRP put up for sale through an account allegedly controlled by McCaleb, according to the....
The legal battle over roughly $1m in disputed funds continues between Ripple Labs and founder and ex-employee Jed McCaleb, with a flurry of new court filings over the past month setting the stage for conflict between the two sides. In total, $1,038,172 is currently being held by digital currency exchange Bitstamp, an amount that both Ripple Labs and the Stellar Development Foundation, McCaleb's current employer, are now seeking. Both sides have weighed in on whether the court should grant Bitstamp's request to be discharged from the case after it filed a complaint for interpleader on 1st....
The Ripple payment network is facing criticism this week over revelations about the liquidity of some of its assets. It’s come to light that Ripple gateways — the onramps and offramps of the network — have the ability to “freeze” user funds at will. Furthermore, Ripple Labs has already used its influence to convince Bitstamp, a prominent gateway and exchange, to freeze $1 million worth of funds belonging to Ripple’s departed founder Jed McCaleb. Ripple “gateways” act as trusted entry and exit points for the payment network, providing users with specialized institutions for converting....
Ripple co-founder Jed McCaleb has finally unloaded his XRP on the market. McCaleb has been dumping the cryptocurrency since 2014 when he obtained 9 billion as compensation for his work in the payment company. Related Reading | Bitcoin Is ‘Here to Stay,’ Ex-BlackRock Investment Adviser Says – Better Than Gold? McCaleb parted ways with Ripple in […]
A months-long legal dispute involving distributed ledger technology startup Ripple and its co-founder Jed McCaleb has come to an end. Though the settlement was announced in an 11th February post on the main Ripple forums, the dispute dates back to last spring when digital currency exchange Bitstamp filed suit over dueling claims on nearly 100m XRP – the native token of the distributed Ripple network – an amount worth just over $1m when the suit was filed. At the time, Ripple alleged that McCaleb had violated a 2014 agreement governing the sale of his XRP holdings, numbered at 9 billion....