Ripple Lawyer Refutes US Government XRP Escrow Seizure Rumors
Ripple’s legal counsel Bill Morgan has denied circulating social media rumors that the U.S. government plans to seize the blockchain firm’s XRP escrow. The speculation intensified after Ripple released 1 billion XRP from escrow in three tranches worth over $2.2 billion. Activists like John Squire and high-profile X user Pumpius compared the scenario to surprise crypto milestones such as Bitcoin ETFs, fueling claims of a government-backed digital reserve. Morgan’s concise refutation—“No, it won’t”—aimed to calm concerns of federal intervention. Similar past rumors suggested Ripple might offer up to 45% of its XRP to settle its SEC lawsuit or integrate XRP into SWIFT’s payment network, but no credible evidence has emerged. Analysts caution traders to await official confirmation and treat the XRP escrow topic with skepticism to avoid reactionary market moves.
Neutral
Morgan’s prompt denial of XRP escrow seizure rumors addresses uncertainty and reduces speculation-driven volatility. Similar past events—such as unverified reports of government interest in crypto reserves or settlement offers involving XRP—failed to materialize and had limited long-term market impact. In the short term, traders may see minor relief in XRP prices as the threat of sudden escrow confiscation is dismissed. Long term, market confidence in Ripple’s escrow management and legal standing is reinforced, but without new catalysts, XRP’s price trend should remain driven by broader regulatory developments and adoption news.