Did Chris Larsen Use a Nonprofit to Pump XRP? Critics Sound the Alarm - Crypto Economy

TL;DR

• A Chris Larsen nonprofit will control voting power in public-bound firm Evernorth.
• It gained influence via major XRP contribution to Arrington XRP Capital fund.
• SEC filings warn structure creates potential conflicts of interest with public shareholders.

A new corporate structure linked to Chris Larsen places a nonprofit entity in a position of influence over a for-profit company preparing to enter public markets. Regulatory filings reveal that RippleWorks Inc., a tax-exempt organization funded by Larsen, will hold substantial voting power in Evernorth, a firm connected to XRP reserves and a planned Nasdaq listing through a merger with Armada Acquisition.

The arrangement appears in a detailed filing submitted to the U.S. Securities and Exchange Commission on March 18. Inside the document, disclosures outline how economic interests linked to Larsen diverge from those of public shareholders who may purchase stock after the listing.

RippleWorks committed both capital and digital assets to the structure. The nonprofit contributed $500,000 in cash and more than 211 million XRP tokens to Arrington XRP Capital Fund, which operates as the sponsoring entity in the deal. As a result, RippleWorks now holds a majority position among limited partners, giving it indirect control over investment decisions tied to Evernorth.

Control Structure Raises Questions Over Shareholder Alignment

Arrington XRP Capital Fund operates under the management of Michael Arrington, who acts as the general partner through a limited liability company. Although Arrington holds formal authority over voting decisions, a binding agreement requires him to follow instructions issued by RippleWorks when voting shares related to Evernorth.

An agreement dated October 17, 2025, formalizes this arrangement. Under its terms, the fund must consult RippleWorks on decisions involving share voting or disposal and must execute votes according to its direction. As a result, RippleWorks exerts control without holding direct executive authority inside the fund.

Additional influence comes from the Larsen Lam Children’s Remainder Trust. The trust plans to contribute 50 million XRP in exchange for over 1.8 million shares of Evernorth, increasing the overall stake connected to Larsen’s network.

The document states that overlapping roles could create conflicts between Larsen’s responsibilities at Ripple, his involvement with RippleWorks, and the interests of Evernorth shareholders. Such language appears clearly in the risk section and outlines the potential for diverging priorities.


RippleWorks reported $1.4 billion in assets during fiscal year 2024, with most funding originating from contributions linked to Larsen. In addition, the nonprofit generated 89% of its revenue by liquidating portions of those holdings, indicating reliance on asset sales rather than external funding streams.

Although Larsen does not hold direct control over voting decisions within RippleWorks, he co-founded the organization and remains a board member. At the same time, he serves as executive chairman of Ripple, which contributes over 126 million XRP tokens to the same transaction structure.

The agreement also includes a pricing mechanism tied to XRP market performance

If XRP increases in value before the deal closes, RippleWorks and Ripple receive additional shares in Evernorth through a contractual adjustment. However, if XRP remains flat or declines, both entities retain their allocations at a fixed valuation.

RippleWorks began operations in 2015 as a nonprofit funded through cryptocurrency wealth. Over time, it distributed funds to charitable causes while maintaining a large asset base. By the end of 2024, the organization still controlled over $1.4 billion despite years of donations.

A nonprofit entity linked to a major crypto executive directs voting power in a public-bound company while affiliated entities hold financial exposure to the same asset pool. The arrangement connects charitable capital, private investment, and public equity under a single framework.