Woofun AI reports that the existential threat posed by the SEC lawsuit nearly forced Ripple into dissolution in 2020, a crisis acknowledged by CEO Brad Garlinghouse and co-founder Chris Larsen.

The contingency plan under serious consideration involved shutting the company down and distributing Ripple's XRP holdings to shareholders on a pro rata basis, ensuring the XRP Ledger would continue operating independently of the corporate entity.

Choosing to fight the case instead preserved hundreds of jobs, though Woofun AI data shows this decision incurred approximately $150 million in legal fees, leveraging the XRP reserve to sustain operations during the prolonged litigation.

Garlinghouse clarified that this strategic maneuver did not imply any direct impact on XRP's price or existing holders, distinguishing the network's resilience from the company's fate as leadership opted for fighting on rather than shutting down.