Complaint: Ripple Labs, Inc. (“Ripple”), Bradley Garlinghouse (“Garlinghouse”), and Christian A. Larsen

 
 
 
 
 
 
 
 
 
 
Table 3: Other XRP Distributions 
 
 
Type of Other 
Distribution in the 
Offering 
Time Period 
Amount of XRP Sold 
(or Exchanged for 
Other Consideration) 
in the Offering 
Executive Compensation Dec. 2016 to 
Dec. 2019 
597,000,000 
On-Demand Liquidity 
Distributions 
Dec. 2018 to
July 2020 
324,000,000 
RippleWorks 
Third Quarter 
2015 – Present 
693,000,000 
xPring
Apr. 2018 to 
Aug. 2020 
776,000,000 
Option Sales Nov. 2018 to 
Sept. 2020 
1,637,000,000 
Digital Asset Trading 
Platforms 
Oct. 2016 to
Oct. 2017 
28,400,000 
Total 
 
4,055,400,000 
Case 1:20-cv-10832 Document 4 Filed 12/22/20 Page 26 of 71

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F. 
Larsen’s and Garlinghouse’s Sales of XRP 
 
1. 
Larsen’s Sales 
151. At all relevant times, Larsen was either the CEO or chairman of the Board of 
Directors of Ripple and thus part of the control group of XRP’s issuer. 
152. While CEO, Larsen had the power to appoint six out of eight seats on Ripple’s 
Board of Directors, and, as Ripple’s largest equity shareholder, had 68% of its voting power. 
153. The following sales of XRP took place with Larsen working in coordination with 
Ripple to develop and maintain a liquid market for XRP through which Defendants could monetize 
their holdings. Email between Larsen and the Market Maker, from at least 2017 through at least 
2019, show that, like Ripple and Garlinghouse, Larsen also attempted to strike a delicate balance 
between maximizing profits from his XRP sales while not depressing the price of XRP. 
154. Larsen at times paid the Market Maker to make offers and sales of his XRP on digital 
asset trading platforms with worldwide operations and customers. Larsen offered and sold his XRP 
to investors all over the world, including in the United States, without marketing or restricting offers 
or sales to persons who had a “use” for XRP and without restricting purchasers from reselling their 
XRP to other investors, including to investors in the United States or elsewhere. 
155. Larsen and his wife netted approximately $450 million from these sales. 
156. Larsen directed his offers and sales of XRP from within the United States.
157. Larsen intends to continue selling his XRP, as shown in an email he sent an investor 
on June 30, 2019. The investor had raised concerns about Larsen’s continued personal sales of 
XRP, to which Larsen described the “widely held view that over time, its [sic] better to have widely 
held assets, so continued reduction of Ripple and founder holdings is likely constructive.” On 
September 22, 2020, Larsen also publicly confirmed from his Twitter account that he had 
transferred half a billion of his XRP, then worth approximately $115 million, to accounts he 
Case 1:20-cv-10832 Document 4 Filed 12/22/20 Page 27 of 71

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established with a digital asset firm incorporated in New York, and recently did in fact make such 
transfers, further evidencing his present intention to continue his unregistered sales of XRP. 
2. 
Garlinghouse’s Sales 
158. From April 2015 to the present, Garlinghouse was either the COO or the CEO of 
Ripple and thus part of the control group of XRP’s issuer. 
159. After Garlinghouse joined Ripple in 2015, Garlinghouse was awarded XRP from 
Ripple, aligning his financial incentives with Ripple’s. Garlinghouse later resold significant quantities 
of XRP to amass profits well over one hundred million dollars. 
160. The following sales took place with Garlinghouse working in coordination with 
Ripple to develop and maintain a liquid XRP market that the Defendants could monetize. 
161. From April 2017 through December 2019, Garlinghouse sold over 321 million of his 
XRP, for approximately $150 million, to the public through digital asset trading platforms or other 
intermediaries. Beginning in December 2017, Garlinghouse used the Market Maker, who deployed 
trading bots on multiple, worldwide digital asset trading platforms, to sell his XRP to the public. 
162. Garlinghouse offered and sold XRP to investors all over the world, including in the 
United States, without marketing or restricting offers or sales to persons who had a “use” for XRP 
and without restricting purchasers from reselling their XRP to other investors, including to investors 
in the United States or elsewhere. 
163. Garlinghouse directed his offers and sales of XRP from within the United States. 
164. At various times between April 2017 and at least December 2019, Garlinghouse also 
paused his XRP sales at the Market Maker’s recommendation because XRP’s market price was 
falling, seeking to avoid having the latter’s own XRP sales further drive down XRP’s market price. 
165. Recently, Garlinghouse transferred some of his XRP into accounts he opened with 
digital asset trading platforms, evidencing his intention to continue his unregistered sales of XRP. 
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