‘Bad Blood’ Between Ripple and Stellar Aired in Tell-All Report

The New York Observer has published a near 15,000-word story that takes a detailed look at the alleged historical “bad blood” between decentralized payment network startups Ripple Labs and Stellar, and the impact of this relationship on events in the wider bitcoin ecosystem.
‘The interpersonal story of Stellar and Ripple Labs is emblematic of the turmoil roiling the entire industry,’the article, penned by Michael Craig, reads. ‘It has everything: sex, huge money, fraud, genius, betrayal, international intrigue and government raids.’
Of particular note are the story’s main participants Jed McCaleb, the founder of now-defunct bitcoin exchange Mt Gox, Ripple Labs and Stellar, and Stellar executive director Joyce Kim who bear the brunt of the article’s barbs.
The Observer reports that McCaleb and Kim have long had a personal relationship that complicated McCaleb’s relationship with other senior executives and board members at Ripple Labs, and ultimately lead McCaleb to leave that company and found competitor Stellar.
Also included in the report are allegations that hit home far beyond the companies themselves, as it suggests the feud at the two companies has had implications for mobile payments startup Stripe and banking giant Wells Fargo, among others.
Wells Fargo bitcoin unit collapses
Of all the details included in the report, however, none perhaps has greater relevance than the revelation that US banking giant Wells Fargo had assembled a task force compromising 20 of its ‘top executives and advisors’ that was aimed at finding ways it could become the first bank to embrace cryptocurrency.

This post was published at Coin Desk on February 5, 2015.