Attorney John Deaton, a vocal advocate for digital asset holders, recently addressed a tweet from “Build on Stellar” that criticized Ripple for spending more on legal fees than on development.
The tweet, which read, “Imagine spending more on lawyers than developers and calling it progress,” appeared to take aim at Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).
Deaton responded by pointing out what he saw as a major contradiction in the situation. He referenced a co-founder of Ripple, widely understood to be Jed McCaleb, who has publicly distanced himself from the company but profited greatly from XRP sales.
Imagine a founder publicly taking shots at the company he co-founded, after the company was targeted by the @SECGov, likely with his help, for spending $150 million in legal fees because the SEC said it was illegal for that company to have sold $1.3 billion in XRP sales. Now… https://t.co/mCvTVnxkHB
— John E Deaton (@JohnEDeaton1) February 8, 2025
While Ripple was forced to spend $150 million in legal fees to defend itself against the SEC’s allegations that its XRP sales violated securities laws, McCaleb reportedly made $2 billion from selling the asset—after the lawsuit was filed and while his former company was under attack.
The Controversy Surrounding Jed McCaleb’s XRP Sales
McCaleb, who left Ripple in 2013 and later founded Stellar, has continued selling large amounts of XRP. His structured settlement with Ripple let him sell portions of his holdings gradually. However, the timing of these sales—especially during the SEC lawsuit—has led to criticism from many in the XRP community.
Ripple’s legal battle with the SEC has had significant financial and reputational consequences for the company and its executives, particularly CEO Brad Garlinghouse and Executive Chairman Chris Larsen. The case has broader implications for the entire digital asset industry, challenging how cryptocurrencies are classified and regulated in the United States.
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Deaton’s remarks underscored the frustration among Ripple supporters, who view McCaleb’s detachment from the lawsuit as unfair. While Ripple has fought a costly legal battle that could shape the future of crypto regulation, McCaleb remained uninvolved while profiting from the very asset under scrutiny.
Ongoing Debate Within the Crypto Community
The exchange between Deaton and Build on Stellar sparked further discussion about whether McCaleb should be held accountable for his role in Ripple’s history. One user questioned whether Build on Stellar was merely a neutral “builders account” rather than an entity taking direct shots at Ripple.
Deaton clarified that while he was not accusing McCaleb of running the account, he believes that if someone makes statements about another person, they should tag them for transparency.
Another commenter argued that McCaleb should recognize the contributions of those at Ripple fighting against what they see as unjust regulatory enforcement. Figures like Garlinghouse and Ripple’s Chief Technology Officer, David Schwartz, have been at the forefront of the industry’s battle against the SEC, earning respect within the crypto community.
The debate highlights the lingering divisions between supporters of Ripple and Stellar, as well as the broader frustrations over regulatory enforcement and internal conflicts within the blockchain industry. As the SEC case against Ripple unfolds, discussions like these will likely persist, reflecting the deep tensions surrounding XRP’s legal and financial history.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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