Ripple Enhances Crypto Asset Recovery with DeRec Alliance Membership

Ripple and XRPL Labs join the Decentralized Recovery (DeRec) Alliance, which aims to facilitate the recovery of digital assets through an open-source process that improves interoperability across various blockchain networks. The alliance includes members such as Hedera, Algorand, and Blade Labs, who collaborate to develop a new standard for interoperability recovery, addressing the needs of users who may lack extensive knowledge in cryptocurrencies.

Ripple Joins DeRec Alliance to Enhance Crypto Asset Recovery

May 9, 2024 9:03 pm UTC

In a significant development for the crypto industry, Ripple and its subsidiary XRPL Labs have joined the Decentralized Recovery (DeRec) Alliance. This alliance aims to facilitate the recovery of digital assets through an open-source process that improves interoperability across various blockchain networks.

The DeRec Alliance was founded by Hedera co-founder Leemon Baird and includes other blockchain organizations such as Swirlds Labs, developer of Hedera, and the Algorand Foundation. Its membership also encompasses Acoer, BankSocial, Blade Labs, The Building Blocks, Casper Association, Constellation Network, The Hashgraph Association, The HBAR Foundation, and Revive Labs.

"In this digital age, users need a safety net for when they lose keys or passwords or other secrets," said Leemon Baird. "This is needed for both web2 and web3, and is critical to bringing these technologies to the majority of the world. It is great to see the industry working together to build DeRec Alliance to address this need."

The DeRec Alliance protocol establishes a standardized system for managing secrets with the help of designated helpers. These helpers assist in recovering secrets without ever directly accessing the secret itself, ensuring both privacy and security are protected.

"As we work towards mass retail adoption, it's becoming increasingly clear that advanced yet user-friendly solutions for key recovery are essential," said Wietse Wind, Founder and CEO of XRP Labs. "The DeRec Alliance comes at a critical moment, uniting experts to enhance interoperability and simplify the user experience without compromising security."

Ongoing Legal Battle with SEC

Meanwhile, Ripple Labs continues to engage in its legal battle with the U.S. Securities and Exchange Commission (SEC). In April 2024, Ripple responded to the SEC's demand for $2 billion in penalties, arguing that the amount should be substantially reduced to $10 million.

The SEC accuses Ripple of illegally raising $1.3 billion through unregistered securities sales of its XRP token to institutional investors. Ripple maintains that these penalties are excessive and unwarranted as the allegations do not include accusations of recklessness or fraud.

The ongoing legal proceedings will determine the outcome of the case and its implications for the crypto industry as a whole. Stay tuned for further updates on this developing story.