The Protos report says that Ripple founder and executive chairman Chris Larsen will exercise significant influence over Evernorth, the XRP treasury company headed for a Nasdaq listing through the Armada Acquisition blank check. The report says the web of nonprofits, trusts, and donations connected to Ripple gives Larsen great leverage while creating a clear conflict for potential public shareholders.
At the center of the story is RippleWorks, an IRS-registered nonprofit that Larsen co-founded. According to the report, RippleWorks has invested $500,000 in cash and 211,319,096 XRP in Arrington XRP Capital Fund, LP, the sponsor vehicle associated with the Evernorth deal. That investment gave RippleWorks a majority of the fund’s limited partner interests, while the fund was required to invest all of RippleWorks’ XRP tokens in Evernorth shares.
Ripple Larsen Founder’s Role
The legal control structure is operated by the general partner of Arrington XRP Capital Fund, LLC owned by Michael Arrington. But the filings described by the Protos say the regulation is blocked by the contract. Under the October 17, 2025 agreement, the fund must “consult with RippleWorks on any decisions directly related to the exercise or voting of Evernorth Holdings Inc. Stock” and “vote such shares as directed by RippleWorks.”
That setting is what gives the report its edge. Protos highlights language from an SEC Form S-4 filed on March 18 that says nothing about misalignment. “The economic interests of the Sponsor differ from the economic interests of the public shareholders,” the document said. It continues: “This structure may create a potential conflict of interest between Mr. Larsen’s duties at Ripple, his influence on RippleWorks’ investment in the Arrington XRP Capital Fund, and the interests of Evernorth Holdings Inc. and its shareholders.”
That concern is amplified by other agencies that feed XRP into the project. Protos reports that the Larsen Lam Children’s Remainder Trust will donate 50 million XRP in exchange for 1,832,454 shares of Evernorth, giving Larsen more influence in the soon-to-be-public company. Ripple itself is also contributing 126,791,458 XRP to the same deal, meaning that the non-profit company Larsen co-founded, the company he co-founded, and a trust tied to his family are all participating in the same Nasdaq structure.
The filing, as cited in the report, acknowledges the limitation of Larsen’s direct authority. It says he “has no direct control over RippleWorks’ voting or investment decisions with respect to the Arrington XRP Capital Fund.”
Yet Protos argues that the warning did nothing to assuage broader concerns, because Larsen remains on RippleWorks’ board, helped create the nonprofit, and remains Ripple’s executive chairman.
In another passage cited by the report, the SEC disclosure states that “Larsen’s dual roles and affiliations may create situations where his interests as a Ripple executive differ or conflict with the interests of Armada Acquisition and the holders of Armada Acquisition Class A Common Stock.”
The financial situation makes the question of governance more prominent. IRS filings cited by Protos show that RippleWorks holds $1.4 billion in revenue for the 2024 fiscal year. The report says that Larsen contributed most of those assets, and that 89% of RippleWorks’ revenue in 2024 will come from selling some of them. It also notes that CEO Doug Galen earned $845,945 that year, while Larsen is listed as secretary/treasurer with zero compensation.
Protos also points to dealing with conditions that could further benefit RippleWorks and Ripple if XRP rises before the close. Under the closing fix, both could receive bonus shares of Evernorth if the token appreciates, while still retaining shares with a fixed contractual value even if XRP doesn’t converge. That asymmetry is important to the report’s perspective: Larsen-linked businesses may be placed in the spotlight on a public market vehicle while common shareholders hold a management structure flagged on the books themselves.
At press time, XRP traded at $1.45.
The featured image was created with DALL.E, a chart from TradingView.com
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