David Schwartz reported the sale of 2.5 million XRP and a $1.7 million tax

Co-founder of XRP Ledger and honorary CTO of Ripple, David Schwartz, announced on November 9, 2026, that he sold about 2.5 million XRP last year and paid approximately $1.7 million in capital gains tax.

The developer wrote about this on social network X during a discussion about his previous cryptocurrency sales. One of the participants in the discussion called XRP an unsuccessful investment, suggesting that Schwartz is reasonably reducing his holdings.

In response, the developer pointed to the amount of tax paid, implying that transactions with XRP brought him substantial taxable profit.

Details on the Sale of 2.5 Million XRP

Schwartz clarified that in 2025 he sold approximately 2.5 million XRP. He received most of these tokens in 2020 and 2023. According to him, the capital gains tax on these transactions amounted to about $1.7 million. However, the developer did not disclose the total sale value, the average token sale price, or their tax basis. The tax amount also does not allow for determining the exact investment result. It reflects the obligations that, according to Schwartz, arose from the asset sales. In the discussion, the developer did not publish a tax return or other documents independently confirming the stated amount.

Schwartz's Holdings Reduced from 26 Million to 2 Million XRP

Previously, Schwartz repeatedly talked about gradually reducing his cryptocurrency portfolio. In August 2026, he reported that at its peak, he owned approximately 26 million XRP, and by that time, he had retained about 2 million tokens. Thus, the amount of XRP in his possession decreased by about 92%. However, this does not mean that all 24 million XRP were sold on the open market. The balance change could include transfers, gifts, and other operations. The developer did not provide a complete transaction history.

Moreover, the August estimate does not allow for determining how much XRP Schwartz still holds as of November 9.

Why Schwartz Sold Cryptocurrency Before Price Increases

David Schwartz explained previous sales by his unwillingness to expose personal savings to high market risks. He mentioned that he began reducing his XRP positions when the token's price reached about $0.10. At that time, the developer did not expect the price to exceed $0.25. A similar situation occurred with Ethereum. Schwartz purchased 40,000 ETH at approximately $0.311 per token and later sold them at $1.05.

The revenue from this deal amounted to about $42,000 with initial costs of approximately $12,440. Although the sale was profitable, the subsequent multiple growth of ETH meant significant missed potential returns.

In July 2026, Schwartz admitted that he regrets such early sales. However, he explained that he acted in accordance with an agreement with his wife: to gradually reduce positions as cryptocurrencies reached new price highs. According to the developer, this approach allowed limiting the dependence of personal finances on sharp market fluctuations.

How Schwartz Changed the Structure of His Assets

In previous public comments, Schwartz reported that a significant portion of his financial assets is tied to Ripple shares. This allocation allows him to maintain an economic interest in the company's development while reducing the direct dependence of his portfolio on daily cryptocurrency price fluctuations. However, a stake in a private company has its own risks, including limited liquidity and the dependence of share value on its performance.

The amounts disclosed by Schwartz show the scale of his previous XRP operations but do not provide a complete picture of the size of his wealth or the current composition of his investment portfolio.