Ripple CTO Emeritus David Schwartz Discloses IRS Tax Compliance and XRP Sales Strategy
David Schwartz, CTO Emeritus of Ripple Labs, recently addressed the increasing frequency of IRS Letter 6174 notices sent to cryptocurrency holders. While tax experts note a large-scale mailing campaign intended to encourage taxpayers to amend delinquent filings regarding virtual currency transactions, Schwartz dismissed the notice as a mere reminder to follow existing laws. Schwartz also provided transparency regarding his personal finances, noting he paid approximately $1.7 million in capital gains tax on the sale of 2.5 million XRP tokens. To mitigate legal risks and avoid accusations of insider trading, he revealed that he utilizes Rule 10b5-1 written sales plans for his transactions. He further noted a shift in his investment strategy, stating he has sold most digital assets due to risk aversion, retaining primarily Ripple stock.
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