TronWeekly

Crypto World News

You are here: Home / Archives for Ripple CTO

Ripple CTO

Ripple Effect: A Quest to Unlock $244 Million Worth of Bitcoin

by

Stefan Thomas, the former Chief Technology Officer at Ripple, finds himself at the center of a digital treasure hunt. Locked away on an IronKey hard drive, there lies a staggering 7,002 Bitcoin, equivalent to approximately $244 million. Thomas, however, faces an insurmountable challenge. He has forgotten the password required to access this digital fortune, and the IronKey is designed to erase its contents after ten incorrect attempts. So far, he has utilized eight of these precious attempts.

Enter Unciphered, a crypto recovery firm that has offered Thomas a lifeline. In an open letter dated October 25, the company extended its services to unlock the IronKey, with the promise of safely retrieving the Bitcoin keys that have been stored for years. Unciphered claims to have devised a method that defies the IronKey’s ten-attempt restriction. Notably, a report from Wired on October 25 stated that the company accessed a similar IronKey after a staggering “200 trillion tries.”

Unciphered’s confidence in their ability to unlock Ripple’s former CTO’s treasure trove is unwavering. They offer to demonstrate their capabilities on multiple IronKey samples to instill confidence in the process. The firm’s CEO, Eric Michaud, revealed that they employed offline servers to gain multiple attempts at guessing the password from the extracted data in the IronKey featured in the Wired report.

Ripple’s CTO and the Unlocking Dilemma

This isn’t the first story of its kind in the world of cryptocurrencies. In 2021, a Redditor recovered access to 127 Bitcoin, more than a decade after losing the private keys on an old computer. In 2013, James Howells inadvertently discarded a hard drive containing 7,500 Bitcoin, making numerous unsuccessful attempts to locate it in a landfill. These tales serve as reminders of the importance of safeguarding one’s cryptocurrency keys.

The broader context reveals a startling statistic. As of 2022, it was estimated that nearly 20% of Bitcoin’s supply had been lost or rendered inaccessible. This translates to billions of dollars worth of cryptocurrency that may never be recovered.

Unciphered’s offer to unlock Ripple’s former CTO’s IronKey, with millions of dollars at stake, represents a crucial development in the ongoing saga of lost or inaccessible cryptocurrency. While it is uncertain whether the former CTO of Ripple will accept their assistance, this story underscores the significance of securely managing digital assets in the era of cryptocurrencies. It also raises intriguing questions about the methods and ethical implications of unlocking what may be considered digital vaults of lost wealth. The ripples from this tale may be felt for years to come, altering the trajectory of cryptocurrency recovery and security.

Ripple Faces Controversy Amid Federal Judge’s Ruling in TerraForm Labs’ Case

by

In a recent legal ruling, Ripple finds itself at the center of a heated debate as a federal judge’s decision in TerraForm Labs’ case challenges the distinction made by Judge Torres regarding Ripple’s XRP sales.

Judge Torres had previously categorized Ripple’s sales to institutional investors as securities while considering those sold through digital exchanges as non-securities. However, TerraForm Labs and its founder, Do Kwon, attempted to utilize Judge Torres’ ruling as a legal precedent to dismiss the Securities and Exchange Commission (SEC)’s lawsuit. The SEC, in response, filed a countermotion, arguing that Judge Torres had made errors in her ruling.

Judge Jed Rakoff, presiding over TerraForm Labs’ case, rejected Judge Torres’ distinction, leading to a vigorous debate on Twitter. A former securities lawyer, John Reed Stark, tweeted that the Ripple decision faced significant challenges.

Ripple CTO Defends the Ruling

On the other hand, Ripple’s Chief Technology Officer (CTO), David Schwartz, provided a different perspective. He pointed out that the ruling was based on an unusual interpretation of the scheme and did not consider how typical cryptocurrencies function. Schwartz shared an excerpt from the ruling, highlighting that the judge’s statements did not apply to regular crypto assets.

According to Schwartz, Judge Rakoff’s decision can be interpreted in two ways, both carrying implications for XRP enthusiasts. In the worst-case scenario, the judge may suggest that he won’t follow Judge Torres’ decision because he applied additional tests beyond the Howey test. In the best-case scenario, Judge Rakoff could have disagreed with Judge Torres’ decision due to differences in specific facts irrelevant to TerraForm Labs’ case.

Schwartz’s analysis sparked reactions among crypto enthusiasts, with John Deaton, founder of Crypto-Law.US, praising the CTO for providing an outstanding review of the ruling. Deaton noted that some of the best legal analyses he has encountered have come from non-lawyers.

Ripple’s Chief Legal Officer Clarifies The Ruling

Ripple’s Chief Legal Officer, Stuart Alderoty, also reviewed TerraForm Labs’ case. According to Alderoty, Judge Rakoff’s decision does not alter the current status of the Ripple lawsuit, reaffirming that XRP is not a security.

The ruling in TerraForm Labs’ case has ignited a fiery debate, leaving the future implications of Ripple’s XRP sales uncertain. As the crypto community closely monitors the developments, the industry awaits further legal clarifications and decisions that may shape the course of cryptocurrencies in the financial landscape.

Related Reading:|XRP’s Meteoric Rise Sparks Bullish Predictions; Analyst Cautions Investors

Ethereum’s Securities Status Under Fire: Ripple CTO & Bitcoin Analyst Debate

by

In a recent Twitter exchange, Ripple CTO David Schwartz and Bitcoin analyst Tuur Demeester engaged in a discussion about the difference between Ethereum (ETH) and Microsoft (MSFT) stock. 

As the crypto industry continues to grow and evolve, discussions like this will play a critical role in shaping its future. The perspectives of industry leaders like Schwartz and Demeester will be instrumental in determining the regulatory framework for cryptocurrencies and digital assets.

However, this debate is significant as it touches upon the larger question of how cryptocurrency and digital assets should be regulated in the future. With the increasing popularity and mainstream adoption of cryptocurrencies, it is crucial that clear guidelines are established to ensure the protection of investors and the integrity of the market.

The conversation was prompted by a tweet from Demeester, who cited the Howey Test and argued that investing in Ethereum can be considered an investment in a common enterprise.

Schwartz replied that he was having trouble understanding Demeester’s argument, pointing out that when someone buys Microsoft shares, they have legal rights over the company and its assets. He asked Demeester to clarify what he was alleging as being analogous to buying Microsoft shares in the case of Ethereum.

Is Ethereum a Security or Commodity?

Demeester responded by saying that he believes investing in ETH is similar to buying Microsoft shares because both involve an investment of money in a common enterprise with the expectation of profit. 

He went on to say that the running of ETH nodes and the writing of client upgrades is a centralized affair and that this centralization makes ETH vulnerable to censorship.

Schwartz countered that there is no investment of money in a common enterprise in the case of ETH and that it’s not clear what Demeester is alleging is analogous to buying Microsoft shares. 

He pointed out that the difference between a commodity and a security is the presence of an investment in a common enterprise and that if all you have is a common interest, then every commodity could be considered a security.

Nevertheless, the discussion between Schwartz and Demeester highlights the ongoing debate about whether ETH should be considered a security or a commodity. The outcome of this debate could have significant implications for the future of cryptocurrency.

Related Reading | Ethereum NFT Market Takes A 59% Dip: DappRadar Report Unveils 2022 Performance

Here’s how Ripple CTO Congratulated Elon Musk Over His Victory

by

The chief technology officer of the massive Ripple Labs, who has recently been highly active on Twitter, not just on cryptocurrency subjects, issued a tweet that appears to be a congratulations to Elon Musk. The jury in the case brought by the SEC against Musk in 2018 as a result of his “420” Tesla tweet found the tech tycoon not guilty. However, the Ripple CTO’s tweet focuses on XRP rather than Tesla. Schwartz cautions that this tweet is a prank just in case.

Elon Musk received a significant victory after a jury dismissed investor charges that he broke the law when he tweeted in 2018 about possibly taking Tesla Inc. private.

After about two hours of discussion, the nine-person jury reached a decision on Friday afternoon, concluding that the investors who had filed the class-action lawsuit had failed to establish their claims against Mr. Musk or the electric vehicle firm he leads.

Mr. Musk, who had earlier attended court to hear the parties’ closing arguments, was not there when the decision was announced. Later, he tweeted his gratitude for the jury’s unanimous verdict and said,

“Thank goodness, the wisdom of the people has prevailed!”

The issue is related to the Tesla CEO’s tweets from more than four years ago that suggested selling the business.

Before this case got to trial, U.S. District Judge Edward Chen had previously determined that certain of Mr. Musk’s claims about possibly taking the business private were untrue and that the CEO had acted recklessly in making them.

Among other things, jurors were required to evaluate whether Mr. Musk’s tweets were relevant to investors and whether the misrepresentations resulted in damages for investors.

The jury’s foreperson, Robin Cadogan, declared that he wasn’t persuaded by the claims that the tweets were relevant. After the verdict was read, it was reported that Cadogan told the attorneys,

“The overall message, it just didn’t land. There was nothing there to give me an ‘aha’ moment.”

Significant Victory To Ripple’s Ally Over SEC

Ripple’s David Schwartz tweeted his own satirical congratulations to Musk “At $420, I’m buying XRP private. funding arranged.”

It’s important to note that the American securities regulator has started to focus on both Elon Musk and Ripple. In December 2020, the government filed a lawsuit against the San Francisco-based fintech company, charging that it and its co-founder and CEO made billions of dollars selling unregistered securities like XRP to institutional investors.

Now that Elon Musk has been found not guilty in the SEC case, the cryptocurrency community anticipates that Ripple will triumph in court against the securities regulator this year as well.

Ripple CTO Sees Light At End Of Tunnel Despite Warren’s Crypto Warning

by

David Schwartz, CTO of Ripple, reluctantly concurs with Senator Elizabeth Warren’s warning about cryptocurrency. In terms of regulating cryptocurrencies, he thinks the Massachusetts senator might actually be on to something.

Warren worries that if there is no adequate oversight, cryptocurrency might end up bringing down the economy in recent op-ed published by The Wall Street Journal.

The senator admits that cryptocurrencies may eventually lead to a more inclusive financial system, but she also emphasizes the fact that history is “littered” with a variety of dubious financial schemes that were promoted by “criminals and charlatans.”

The Justice Department should employ its “full range of resources,” according to Warren, because cryptocurrency executives who violate the law are no different from those who use other platforms.

The legislator continued by saying that the US Securities and Exchange Commission also needed to “suit up.” Warren also criticized cryptocurrency mining companies for putting a load on the electrical infrastructure and raising greenhouse gas emissions.

She has emphasized that cryptocurrency must adhere to the same regulations as traditional financial industries.

Schwarz from Ripple says that given Warren’s recognition of the significance of reforming cryptocurrency law, this is not “an bad position to work with.” This, he continues, is crucial for establishing proper crypto rules.

Ripple Looking To Consider Deals For FTX Assets

The demise of the reputable exchange FTX has continued to have a negative impact on the cryptocurrency economy. Many organisations have expressed interest in helping Sam Bankman-failing Fried’s company from the outset. Binance first considered throwing a life jacket but eventually changed his mind. At about the same time, Justin Sun of Tron asserted that he was developing a plan with FTX to “initiate a pathway ahead.”

However, as of late, the blockchain payment giant Ripple has expressed interest in purchasing some of the assets of the struggling cryptocurrency exchange FTX.

The Sunday Times reported that former FTX CEO Bankman-Fried called Ripple CEO Brad Garlinghouse two days before the company declared bankruptcy in an effort to gather investors to save it. The two then talked about if there were any FTX-owned companies that Ripple “would want to own.”

Garlinghouse further stated,

“Part of my conversation [with SBF] was if he needs liquidity, maybe there are businesses that he has bought or he has that we would want to own. Maybe there’s investments that we would want own. Would we have bought some of those from him? I definitely think that was on the table.”

As the BitBoy vs. Atozy Lawsuit Came to an End, Ripple CTO Sheds His Views

by

BitBoy vs. Atozy has several people including Ripple CTO talking about it. Ben Armstrong, the creator of Bitboy Crypto, declared that he is dropping his defamation case against fellow YouTube content creator Erling Mengshoel Jr., better known by his stage name Atozy.

In response to the November 2021 video “This YouTuber exploits his following…,” Armstrong formally sued Mengshoel on August 12. Armstrong was charged with dishonestly promoting fraudulent assets to his audience, such as PAMP, for his own gain, according to “Bitboy Crypto.” He also demanded  $75,000 in compensation.

However, Armstrong did hint during a live webcast on Wednesday that he is now dropping the accusation now that Mengshoel has amassed more than $200,000 for his defense.

Ripple CTO stated that BitBoy was misled by his lawyers

In response to the legal conflict between well-known crypto YouTuber Ben Armstrong (BitBoy) and Erling Mengshoel (Atozy), Ripple’s CTO David Schwartz has chimed in.

“So, about the BitBoy andAtozy lawsuit: It looks like everyone is doing the right thing now. And as I suspected, it seems Ben was misled by his lawyers who *definitely* should have known better. Yay for happy endings.”

Mengshoel was able to unite the crypto community behind him and launch a successful GoFundMe campaign to pay for his legal costs. 

He claimed that he was being sued for nothing more than expressing his viewpoint. Additionally, the frequency of YouTube videos accusing Armstrong of unethical crypto advertising has increased.

Armstrong claims that if he had realized the lawsuit would garner such attention, he would not have filed it.

The crypto YouTuber clarified that he initially filed the complaint to get Mengshoel to take down the video, and he hinted that he had no intention of actually going through with the legal procedures.

Atozy now has enough money to cover legal costs, according to BitBoy, and the conflict has grown more complicated than he had anticipated as a result of a well-known crypto trader like Cobie, who donated $100,000.