Ripple CTO Emeritus David Schwartz Slams Viral XRP ‘Secret Contract’ Conspiracy as Fake News Swarms X

A viral social media post recently claimed that Ripple has been hiding secret deals for its XRP tokens (XRP-USD). Ripple’s CTO Emeritus, David Schwartz, stepped in to set the record straight. He flatly denied that he ever confirmed the existence of “pre-allocated” contracts for special investors, calling the rumors completely false.

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Schwartz Shatters Fake Narrative amid Social Media Chaos

The controversy started when an X (Twitter) post gained traction by falsely claiming Schwartz “officially confirmed” that most of Ripple’s escrowed XRP was already promised to secret recipients. Because Schwartz is a co-creator of the XRP Ledger, his words carry a lot of weight. Fabricating a quote from him makes a fake story look real to everyday investors.

Schwartz was quick to shut this down, making it clear that the statement attributed to him has no basis in reality. While he has explained in the past how the technology could allow for future rights to be sold, he has never said that these secret contracts actually exist today.

Misinformation Explosion Triggers Alarm for XRP Holders

This incident is part of a bigger problem with fake news in the XRP community. Just a few months ago, a fake memo went viral claiming Ripple sold over $8 billion in XRP in 2025. These types of lies happen almost daily, often spread by large accounts looking for attention.

Schwartz has had to step in multiple times lately to reject other false claims, such as rumors that Ripple gives massive discounts to big banks. These fake stories matter because they can trick people into making bad financial choices based on “expert” quotes that were never actually said.

Furthermore, these theories fall apart etfs-before-sec-deadline-today">when compared to the actual data on the blockchain. Since 2017, Ripple has used a locked escrow system that automatically releases up to 1 billion XRP every month. This process is fully public, allowing anyone to track exactly where the tokens go the moment they are unlocked. Schwartz is pushing for investors to use this verifiable data rather than falling for fake stories that can’t be proven.

At the time of writing, XRP is sitting at $1.3328.

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