Ripple CEO Brad Garlinghouse addressed claims that his company controls XRP, characterizing such assertions as false and noting they contributed to litigation requiring Ripple to prove otherwise.
During a discussion about cryptocurrency adoption, an attendee questioned whether XRP's concentration in the hands of one entity and select individuals undermined its appeal as a decentralized alternative to government-issued currencies like those managed by Bitcoin and Ethereum networks.
Consensus Model Separates Token Ownership from Control
Garlinghouse explained that the XRP Ledger operates as open-source and decentralized infrastructure. Ripple operates 2% of the network's validators, with independent parties running the remaining 98%. He emphasized that the ledger is not a proof-of-stake network, meaning token ownership does not grant governance rights. Instead, validators reach consensus through a process that determines transaction validity.
While acknowledging that Ripple holds a substantial amount of XRP, Garlinghouse stated this position provides no control over ledger governance or operations.
The $150 Million Theft as a Demonstration
Garlinghouse cited a theft occurring approximately 18 months prior, in which $150 million in XRP was stolen from Ripple's founder. He argued that if Ripple controlled XRP, the company would have reversed the transaction. It could not. He noted that some funds were subsequently recovered only after centralized exchanges froze the assets and the FBI intervened.
Garlinghouse dismissed online claims of XRP centralization as fundamentally inaccurate and stated he no longer engages with such arguments publicly.
