About $400 million worth of XRP tokens can be associated with illegal transactions, according to London-based blockchain analysis firm Elliptic.
Ripple is using its affiliated charity foundation as a corporate and executive tax shelter, according to crypto research firm Messari. The accusation was voiced after London-based blockchain analysis firm Elliptic found that about $400 million worth of XRP tokens can be associated with illegal transactions.
Messari Cites Several Issues with Ripple
Besides using the foundation as a tax shelter, Ripple’s charity non-profit is not allocating any grants to charities and is hiding the fact that 2.2 billion XRP tokens counted as circulating supply is now locked in long-term restricted selling agreements. The findings were shared by Messari author Ryan Selkis.
As per the Foundation’s Form 990 for the fiscal year 2018 that ended April last year, the Ripple Foundation for Financial Innovation, which is affiliated with the company and its co-founder Chris Larsen, granted $0 to charities, while it had $1.2 billion in assets under management.
Meanwhile, the Ripple Foundations paid $665,000 in salary to its CEO and invested $30 million in digital asset management firm, Arrington XRP Capital, which is run by Ripple CEO Brad Garlinghouse’s friend Michael Arrington.
$400M of XRP Connected to Illicit Activity
Yesterday, Elliptic launched a transactions monitoring system for XRP, the token run by Ripple and used for its global payment network. So far, the system has managed to identify about $400 million of XRP tied to illegal transactions. Nevertheless, the illicit transfers account for less than 0.2% of all XRP transactions that took place.
For comparison, the UN Office on Drugs and Crime estimated that over $2 trillion is generated in annual proceeds from illicit activities. Ripple came out in 2014, so we can determine that about $10 trillion was made from illicit activities since then. That’s a huge amount, considering that the…