ZachXBT Renews Criticism of XRP, Labels Holders “Exit Liquidity”

Blockchain investigator ZachXBT has again accused the XRP community of enabling insider enrichment and ignoring systemic risks. His latest remarks, posted on August 28, reignited long-running criticisms aimed at Ripple, its founders, and XRP holders.

The key charge: retail investors serve as “exit liquidity” while insiders dump billions in XRP. ZachXBT cited recent wallet activity from Ripple co-founder Chris Larsen, including a $175M transfer to exchanges. He argues that these consistent insider moves betray the retail base that props up the project’s market cap.

ZachXBT refused to help an XRP scam victim who lost $33,000. His reason: Ripple’s ecosystem adds no real value to crypto and offers little support to its own users. “Not worth supporting,” he said. This mirrors past comments where he lumped XRP with Cardano, Pulsechain, and Hedera, calling them “low-value chains.”

He highlighted Ripple co-founder Chris Larsen’s transfers: In July 2025, Larsen moved 50M XRP ($175M) to exchanges like Coinbase, Bitstamp, and Bybit from wallet rhREXVHV938ToGkdJQ9NCYEY4x8kSEtjna (activated by Larsen). Earlier in March 2025, Larsen unlocked 1B XRP and sent $140M to Bithumb shortly after a U.S. crypto reserve announcement involving XRP.

Core Claims by ZachXBT On XRP Over The Years

• XRP is centralized: Ripple controls ~50% of the supply. Insiders benefit most. There’s no validator incentive model, and Ripple’s Unique Node List gives it veto power.
• Retail is exit liquidity: Founders like Larsen keep dumping large amounts. ZachXBT tracked billions in on-chain transfers.
• Zero stablecoin adoption: Major issuers like Circle, Tether, and Paxos have not deployed native stables on XRP. He points to this as a sign of ecosystem weakness.
• No public goods funding: Ripple does little for user protection or tooling. Victims must rely on FBI filings or exchanges to trace scams.
• Misleading marketing: Ripple hypes paid partnerships and misrepresents them as organic adoption. ZachXBT cited BlackRock rumors used to stir price action.

ZachXBT also highlighted irony in Ripple’s spending priorities. In June 2025, Larsen donated $9M to San Francisco police drones, while XRP scam victims get no support. In another instance, Larsen reportedly lost $150M worth of XRP in a 2023 LastPass hack.

Community Reaction

His comments went viral. Some users supported the stance, calling XRP a “ponzi with branding.” Others, including Ripple-affiliated accounts, claimed bias and pointed to past collaborations. One community researcher accused ZachXBT of holding a grudge after a failed job discussion with Ripple.

Despite backlash, ZachXBT stood firm. He reiterated that he focuses on major frauds and high-value cases. “I will not waste time on chains that enable their own users to be rugged repeatedly,” he said.

Ripple, as of now, has not responded publicly. XRP trades around $3.01, up 420% in the past year. CME’s XRP futures crossed $1B in open interest, fueling ETF speculation. But critics say the price action doesn’t change core issues of control, dumping, and broken trust.