A legal dispute over $1 million in XRP held by Bitstamp involves Ripple Labs, Stellar Development Foundation, and founder Jed McCaleb. The case centers on whether McCaleb breached a settlement agreement by selling XRP through his cousin, with both parties seeking the frozen funds and disagreeing on jurisdiction and discovery procedures.
Ripple Labs and the Stellar Development Foundation are locked in a legal battle over approximately $1 million in XRP currently held by exchange Bitstamp. The dispute stems from an XRP sale executed by McCaleb's cousin Jacob Stephenson, which Ripple claims violated a settlement agreement limiting McCaleb's ability to sell his XRP holdings. A federal judge has frozen the funds and ordered expedited discovery, but McCaleb and Stellar are contesting the proceedings, arguing the dispute should be handled through arbitration and questioning whether Ripple has any legitimate claim to the funds. Recent filings reveal allegations of conflicts of interest involving Ripple's counsel and interconnected relationships between Ripple and Bitstamp leadership. A hearing scheduled for June 10 will address Ripple's request for a preliminary injunction and Bitstamp's request to be discharged from the case.