In a recent twist, Ripple’s Chief Technology Officer (CTO), David Schwartz, has weighed in on the controversy surrounding a prominent crypto analyst, Ben Armstrong. A report claimed Armstrong held a substantial $80 million worth of XRP in his portfolio while soliciting donations from the XRP community to fund a legal battle.
Ben Armstrong’s response to the allegations was nothing short of candid. He refuted the claims and provided a comprehensive account of the situation. In a tweet, Armstrong revealed his financial entanglement with his former Chief Financial Officer (CFO), Timothy Shedd, and Celsius’s now-bankrupt crypto lending business.
This is hilarious.
— Ben Armstrong (@BenArmstrongsX) September 22, 2023
1. My CFO, Timothy Shedd, singlehandedly lost $3M in crypto on Celsius. And his son, TJ Shedd, the CEO, refused to fire him. TJ made his dad CFO in spite of having ZERO financial experience. All of our XRP was on Celsius.
2. They stole all my money. https://t.co/uCthpfrWYg
Notably, Shedd serves as the CFO of HIT Network, the media company where Armstrong previously worked. Armstrong disclosed that Shedd had incurred massive losses of $3 million in crypto assets on the Celsius platform. What raised eyebrows further was that Shedd’s son, TJ Shedd, was the CEO of HIT Network despite needing more significant financial experience. The crux of the issue lay in the custody of the company’s XRP portfolio, including Armstrong’s holdings, which were held on the now-defunct platform.
While Armstrong’s predicament initially raised questions, it also attracted the attention of David Schwartz. Schwartz wasted no time in dismissing the allegations as baseless and unreliable. In a Twitter post, David stated that the “article is complete nonsense” despite his occasional clashes with Armstrong on XRP-related matters.
This article is complete nonsense.https://t.co/rPnHrjAnzj
— David "JoelKatz" Schwartz (@JoelKatz) September 22, 2023
Schwartz’s stance found support among other members of the XRP community, who criticized the article for its poor content and alleged clickbait nature. Some astute observers pointed out a critical oversight in Armstrong’s donation wallet analysis. Specifically, the address provided for donations was an exchange wallet housing the $80 million XRP. This crucial detail, the destination tag, was conspicuously ignored by the article’s author.
As the controversy unfolds, it remains to be seen whether these revelations would end the allegations against Armstrong or if the XRP community will persist in questioning his actions and financial dealings. The coming days may shed more light on this ongoing dispute.
