Ripple is on the verge of burning all XRP held in escrow wallets, a former Ripple director has revealed.

Former Ripple director Matt Hamilton dropped a bombshell that Ripple may have the power to burn all XRP tokens locked in escrow wallets. The revelation injected new complexity into Ripple’s ongoing legal dispute with the SEC.

Ripple’s Hidden Combustion Power

Hamilton, a former chief developer advocate for Ripple, shared insight into the ongoing litigation. that suggested With its technological prowess, Ripple can disable the master keys of accounts set up to receive escrow tokens, making escrow funds virtually untouchable in the future.

This concept of “burning” XRP introduces a new dynamic, making the token essentially unusable even by Ripple itself.

legal implications

The concept of XRP token burning received attention following the SEC’s request to destroy LBRY Credits (LBC) tokens in a recent lawsuit. This has sparked debate within the XRP community as to whether Ripple could be forced to burn XRP in escrow.

Meanwhile, Ripple CTO David Schwartz joined the discussion. point it out Although courts or the SEC cannot have direct authority, they can enforce such measures through agreements among XRPL validators.

Pro-XRP Attorney Bill Morgan Added Insights, emphasizing that court orders do not automatically bind XRPL validators and require a legal hearing for enforcement. This is consistent with a previous statement from Ripple CEO Brad Garlinghouse in April 2021, where he suggested considering burning XRP tokens in certain scenarios for the benefit of the broader XRP ecosystem.

The potential decision to burn XRP tokens as Ripple irons out legal complexities introduces a new dimension to the ongoing story.