Ripple’s David Schwartz Reveals $1.7 Million XRP Tax Payment, Defends Token Sales

In Brief:

• Ripple CTO Emeritus David Schwartz revealed a $1.7 million capital gains tax payment while defending his XRP sales against criticism.
• Schwartz reduced his XRP holdings from approximately 26 million to 2 million tokens through sales, gifts, and other transfers.
• Schwartz shifted much of his savings into Ripple stock, reflecting a personal investment strategy aimed at reducing cryptocurrency market exposure.

Ripple CTO Emeritus David Schwartz has disclosed a $1.7 million capital gains tax payment while defending past XRP sales against criticism. The disclosure provides further details about Schwartz’s cryptocurrency holdings and decisions to reduce exposure to market volatility.

According to Schwartz’s recent exchange on X, the payment followed cryptocurrency sales that generated substantial taxable gains. His response came after a user described XRP as a poor investment and defended investors who chose to sell.

Schwartz challenged that assessment by pointing directly to the taxes generated from his investment profits.

“The $1.7 million I paid in capital gains tax says otherwise,” Schwartz wrote.

The Ripple executive also disclosed selling approximately 2.5 million XRP during 2025, with most tokens originating from employment bonuses. Those bonuses came from his work at Ripple in 2020 and 2023. His explanation addressed criticism surrounding XRP sales by prominent Ripple figures and offered additional context about his financial decisions.

David Schwartz Explains XRP Holdings Decline From 26 Million to 2 Million Tokens

Schwartz’s disclosure follows earlier statements detailing how his XRP holdings declined significantly over several years. In August 2026, the Ripple executive revealed that his holdings had fallen from approximately 26 million XRP to 2 million. This represented a reduction of roughly 92% from his peak holdings.

While some tokens went toward gifts and transfers, Schwartz confirmed that he sold most of his XRP holdings. Significantly, the Ripple executive began selling XRP when the cryptocurrency reached $0.10, reflecting his preference for securing investment gains.

Schwartz previously acknowledged that he never expected XRP to exceed $0.25, influencing his decisions during earlier market cycles. His cautious investment strategy also extended beyond XRP, including the sale of approximately 40,000 Ethereum tokens at $1.05 each.

Those transactions generated proceeds of approximately $42,000, excluding fees, despite Ethereum subsequently reaching considerably higher valuations. Schwartz acknowledged regretting those early sales, particularly given the substantial gains he could have earned by retaining the assets.

Ripple Executive Explains Risk Management Strategy and Investment Shift

Beyond the individual transactions, Schwartz explained that his cryptocurrency sales reflected a broader strategy developed with his wife. The couple agreed to sell predetermined portions of their holdings whenever prices reached new all-time highs.

This approach allowed Schwartz to secure profits while reducing exposure to unpredictable cryptocurrency price movements. Additionally, Schwartz disclosed that he transferred much of his savings into Ripple stock rather than maintaining substantial cryptocurrency holdings.

Unlike publicly traded cryptocurrencies, Ripple shares remain relatively illiquid and carry separate investment risks. His comments indicate that his financial exposure has shifted toward Ripple’s corporate performance rather than direct XRP price movements.

The $1.7 million tax disclosure also provides context for his investment history amid criticism of his previous token sales. Schwartz’s statements establish that his XRP sales formed part of a broader personal investment strategy rather than a single transaction.

Ultimately, the Ripple executive’s disclosures clarify his historical cryptocurrency holdings, realized gains, and reasons for reducing exposure to digital assets.