Ripple Shareholder Company Files for Bankruptcy! What Will Happen to 4.7 Million Shares Worth $385M?
In a significant development shaking the crypto community, a major Ripple shareholder company has officially filed for bankruptcy, raising concerns over the future of 4.7 million Ripple shares valued at approximately 14 billion THB (~$385 million).
The company, which has long held a notable stake in Ripple, has struggled under financial pressures from recent regulatory challenges and liquidity issues. The bankruptcy filing, confirmed in early July 2025, adds further uncertainty to Ripple’s share structure, investor confidence, and the broader crypto ecosystem.
What Happened?
The shareholder company, known for investing heavily in crypto projects, faced cash flow difficulties and debt burdens, leading to its court-filed bankruptcy protection. According to reports, the 4.7 million Ripple shares it holds are now under review for liquidation to repay creditors.
This event follows Ripple’s ongoing legal battles with the SEC and other regulatory bodies, which have already created volatility in XRP’s price and market trust.
What Will Happen to the 4.7 Million Ripple Shares?
Currently, it remains unclear whether the shares will be:
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Liquidated in bulk to raise immediate cash,
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Transferred to another entity during restructuring,
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Used for debt settlements with institutional creditors.
Analysts suggest a forced liquidation could place downward pressure on Ripple’s valuation in secondary markets, while a structured sale may reduce market disruption but take longer to complete.
Impact on Ripple and Investors
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Ripple may experience short-term volatility if shares hit the market.
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Existing Ripple investors should monitor potential price swings due to liquidation pressure.
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Ripple’s corporate structure will likely remain stable unless a major stakeholder replaces this position.
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This incident highlights the risks of large centralized holdings in crypto projects during financial crises.
Should You Be Concerned?
If you hold XRP, this bankruptcy may not directly affect your holdings unless a large-scale liquidation occurs. However, investors should stay informed as further details on the bankruptcy proceedings and asset handling are released.