Emily Walker
On January 29, Brady Swenson, co-founder of the Bitcoin-centric financial service platform, Swan, made strong allegations against Ripple’s CEO, Brad Garlinghouse, through a post on X. Swenson did not hold back, stating, “Corrupt Brad … He is not a man of integrity. His track record reveals a consistent pattern of deceiving investors, promoting inflated narratives, and profiting at the expense of others.”
Swan Co-Founder Accuses Ripple CEO of Corruption
Swenson first pointed out accusations of insider trading. He claimed, “Ripple executives, including Garlinghouse, sold billions of XRP to retail investors while promoting positive predictions for the token.” He likened these actions to “classic pump-and-dump schemes,” indicating that these sales were strategically timed around Ripple’s promotions.
He further criticized what he called “false adoption claims,” where Ripple purported that significant banks were using XRP. Swenson argued that these institutions primarily used RippleNet for payments rather than actively adopting XRP, describing this representation as “misleading at best, deceptive at worst.”
Swenson also addressed the narrative surrounding the SEC lawsuit, noting how Garlinghouse portrayed the regulatory action as politically motivated. He suggested that this tactic shifts responsibility, enlisting XRP holders to defend Ripple and obscuring the SEC’s allegations of selling unregistered securities. “The SEC sued Ripple for selling unregistered securities, and instead of taking accountability, Garlinghouse depicted it as a political attack to unite XRP holders,” he articulated.
Swenson critiqued Garlinghouse’s statements about XRP’s decentralization as well. He echoed Garlinghouse’s claims of decentralization but countered with the fact that “Ripple controls the majority of XRP’s supply and can manipulate market conditions at will.” According to Swenson, this ownership undermines true decentralization.
Relatedly, he condemned what he perceived as a cycle of overpromising by Garlinghouse, stating that “he has spent years making ambitious predictions about XRP’s future that never materialize,” while “he and fellow insiders profit at the expense of retail investors.”
Swenson’s remarks follow significant news after President Donald Trump’s signing of the inaugural crypto executive order aimed at establishing a “national digital asset stockpile,” positioning the US as a potential ‘crypto capital’. This has triggered discussions in the cryptocurrency sector regarding its implications for various digital currencies, including Bitcoin and XRP.
In response to these developments, Garlinghouse has been active behind the scenes, lobbying for XRP’s inclusion in this strategic reserve. These lobbying efforts have raised eyebrows, leading to questions about his motives, with some critics accusing Garlinghouse and Ripple of exploiting their influence to advocate for XRP within governmental frameworks.
Garlinghouse defended these moves by claiming that Ripple’s lobbying efforts are consistent with the intentions of a Bitcoin-oriented reserve, aiming to create a broader crypto reserve that encompasses Bitcoin as well. He contended that Ripple’s actions support Trump’s promise to enhance American tech firms, suggesting this could create a more welcoming policy environment for digital currencies.
However, these efforts have generated controversy within the cryptocurrency community. Bitcoin advocates like Pierre Rochard and Ryan Selkis see Ripple’s actions as counterproductive to a Bitcoin-centric reserve. They assert that Bitcoin, due to its decentralized characteristics and status as an energy-related commodity, should be the focus, raising concerns about XRP’s centralization and Ripple’s control over its supply.
As of now, Garlinghouse has not publicly addressed Swenson’s latest allegations.
Currently, XRP is trading at $3.10.