Ripple Used Bots To Manipulate XRP Price: Court Docs
Allegations have emerged suggesting that Ripple may have used automated bots to manipulate the price of XRP. These claims are based on documents shared by crypto researcher Darkhorse, shedding light on the intricate strategies employed to influence XRP’s market value during 2015 and 2016.
Has Ripple Manipulated The XRP Price?
The court documents, part of the ongoing SEC vs. Ripple lawsuit, suggest that the company directed market maker GSR Markets to execute transactions that impacted XRP prices. Specifically, these documents detail the operation of “xrp 2t 6t bots” and outline how GSR was tasked with buying and selling XRP to affect its price, including actions attributed to bots operated by notable figures within the company, such as CEO Brad Garlinghouse and co-founder Chris Larsen.
🫡🫡🫡 For all those who want to know how the xrp 2t 6t bots were used and GSR was employed to sell and buy and the effects on the price, I finally found the document that explains it all. Including Brad and Chrises bots.
Apologies for the delay. https://t.co/DIEsbtn6Jq pic.twitter.com/kj4WRvbnX8— ĐΛRKHØRSΞ™ (@DarkhorseDNME4) February 28, 2024
According to screenshots shared by Darkhorse, a graph labeled “figure 6 – Net XRP Sales vs. Price of XRP” from the court documents indicates a direct correlation between net XRP sold by GSR and the XRP/USD price movements. The graph, sourced from GSR’s Excel Export covering 2014-2016, reveals strategic pauses in XRP sales during significant price declines, followed by resumed sales upon receiving specific targets or approvals from Ripple.
Darkhorse elaborates on the tactics used, explaining, “Ripple tells GSR they are about to drop some news so to not look suspicious GSR buys XRP creating a price rally themselves…once the rally goes into full swing…GSR starts selling those bought XRP and Ripples XRP into the rally.” This pattern of buying to stimulate FOMO (Fear Of Missing Out) among retail investors and then selling into the generated rally appears to have been a repeated strategy.
Respected XRP community member Wrathof Kahneman commented on the revelations, emphasizing that the documents describe actions aimed at stabilizing and boosting XRP’s price rather than suppressing it. “I make no claims about what has been said, but the doc describes the opposite of price suppression – Ripple was using bots to stabilize and boost price in 2015, ’16,” Kahneman remarked.
Ripple has yet to respond publicly to these specific allegations. The unfolding situation raises questions about the transparency and fairness of the XRP market, with potential consequences for investor trust. Previously, Ripple CTO David Schwartz has denied any XRP price manipulation.
The implications of these allegations are profound. Ripple’s ongoing legal battle with the SEC adds another layer of complexity to the case. The lawsuit, which already promises further delays, is expected to start with the remedies phase in the upcoming weeks. As Bitcoinist reported, the SEC filed a request on February 27, 2024, seeking to postpone the submission deadlines for the briefs concerning the remedies phase.
In detail, the SEC wishes to extend its deadline for the submission of the opening brief related to remedies from March 13 to March 22, 2024. As a result, the new timeline would adjust Ripple’s deadline to submit its counter brief from April 12 to April 22, 2024, and would also push back the SEC’s deadline to file its response brief from April 29 to May 6, 2024.
At press time, XRP traded at $0.60.
Featured image from Shutterstock, chart from TradingView.com
