Jake Claver, CEO of Digital Ascension Group, is warning XRP investors that they may be putting their crypto wealth at unnecessary legal, tax, and estate-planning risk.

He explains that since the IRS classified crypto as property in 2014, investors have had access to stronger ways to protect their assets. Yet most holders still don’t use them.

According to Claver, families sitting on six- or seven-figure XRP portfolios could face lawsuits, probate issues, or forced asset sales if their crypto remains in their personal names.

Why Property Classification Changes Everything

Claver notes that when the IRS declared crypto property, it placed digital assets under the same legal umbrella as real estate. For wealthy families, this unlocked decades of established asset-protection tools. Yet retail investors rarely apply them.

He explains that crypto held in personal wallets is fully discoverable in a lawsuit. If someone sues you, whether for a car accident or a business dispute, a judge can legally demand access to your private keys. Attempts to hide assets can lead to contempt of court or even jail time.

Estate Planning Advantages XRP Holders Often Overlook

Claver points out a major benefit many people miss: the step-up in basis at death. If someone bought XRP at $0.50 and died when it was worth $100, their heirs would inherit it at the $100 value, eliminating all capital gains.

He also explains that families can pass on up to $13.6 million per person (or $27.2 million for couples) tax-free by using the annual gift exemption and filing Form 709.

Placing assets in a revocable living trust can help, too. It avoids the delays and costs of probate, keeps family holdings private, and allows a smooth transfer of control to a surviving spouse.

Borrowing Against XRP Instead of Selling

Claver further notes that wealthy individuals avoid selling appreciating assets, instead borrowing against them.

He cites how Elon Musk financed his $40 billion Twitter deal by borrowing against Tesla stock. XRP holders can use the same approach to access liquidity by taking loans against their crypto without triggering taxable events.

Institutional custody also matters. Claver says moving holdings into insured, bankruptcy-remote accounts prevents catastrophic loss and strengthens legal protection.

Why Wyoming LLCs Are Becoming a Critical Shield

The Digital Ascension Group CEO stresses that investors urgently need stronger legal structures to protect their XRP. Moving XRP into a Wyoming LLC, especially one specifically for crypto, provides charging-order protection.

This means creditors cannot seize the LLC’s assets; they can only wait for distributions, and the LLC is not obligated to make any.

When this setup is supported with proper corporate records, such as documentation, meeting minutes, and board resolutions, the LLC’s liability shield becomes extremely difficult to penetrate.

Retail Investors Are Still Missing the Bigger Picture

According to Claver, many XRP holders still treat crypto like a high-risk lottery ticket rather than a long-term asset class. Meanwhile, high-net-worth families treat it like commercial real estate: structured, shielded, insured, and rarely sold.

He warns that most people will learn these lessons too late—after an audit, a lawsuit, or paying avoidable taxes on gains they didn’t need to realize.

Ultimately, Claver’s main point is that understanding crypto’s classification as property is key to building generational wealth but only if investors act now, not years later.

This is about to become very important for XRP holders to understand… https://t.co/lgBdnH6F9i

— Jake Claver, QFOP (@beyond_broke) November 20, 2025

A leading American multi-family office calls attention to financial and legal problems XRP investors could face when XRP reaches higher targets.

Notably, XRP and the broader crypto market have remained in a downtrend over the past few weeks. Despite this, many investors have insisted that XRP will eventually recover, with some still discussing lofty targets such as $100. 

However, Digital Ascension Group (DAG), a family office that supports high-net-worth families with wealth protection and planning, recently warned that many XRP holders may face serious problems before they enjoy those gains.

How the 2014 IRS Rule Affects Your XRP Holdings

The firm explained that most retail investors overlook how U.S. tax rules treat cryptocurrency. For context, in 2014, the IRS released Notice 2014-21, which officially labeled crypto as property instead of currency. 

This rule means every sale, trade, or everyday purchase made with crypto counts as a taxable event. Specifically, investors must calculate gains or losses using fair market value at the time of each transaction and track the cost basis carefully, even for small purchases.

Digital Ascension Group noted that many people who hold six- or seven-figure XRP portfolios do not understand what this means for them. The firm noted that it often meets families who store large amounts of XRP in personal cold wallets without any legal structure to protect those assets.

They warned that a single lawsuit can put those personal holdings at risk. For instance, if someone sues an investor over a property injury, a car accident, or a business dispute, the court can request full disclosure of all assets under that person’s name. Judges can also order investors to surrender wallet keys. 

Some investors think they can simply claim they lost access, but DAG stressed that courts can punish them with contempt charges, and some individuals even face jail time while their assets remain frozen.

Efficient Wealth-Planning Tools

Despite these risks, Digital Ascension Group said the IRS’s property classification also allows for efficient wealth-planning tools, many of which wealthy real-estate families have used for generations. 

One example is the step-up basis at death. Specifically, if someone buys XRP at $0.50 and later dies when XRP trades at $100, their heirs inherit the asset at the $100 value and owe no capital-gains tax on the increase.

The firm also encouraged investors to borrow against their XRP instead of selling it. This gives them liquidity while they keep ownership and avoid an immediate tax bill. 

Digital Ascension Group compared this method to strategies used by major entrepreneurs. They particularly pointed to billionaire Elon Musk, who borrowed roughly $40 billion against Tesla stock to help finance his purchase of Twitter (now X).

Using a Wyoming LLC to Protect Your XRP Assets

In addition to this, the firm recommended placing XRP and crypto holdings inside a Wyoming LLC to strengthen asset protection. 

This structure will help with charging-order protection, which shields the assets from creditors. Notably, creditors can only wait for distributions that the LLC does not have to issue. The legal barrier protects the investor while keeping full control with the LLC. 

DAG also highlighted the ability to gift up to $13.6 million to family members tax-free, or $27.2 million for married couples who file Form 709. Using this will allow families to transfer wealth out of their taxable estates during their lifetime.

Digital Ascension Group then suggested placing the LLC within a revocable living trust. When the owner dies, the surviving spouse immediately becomes the trustee and gains control of the assets. This typically avoids probate, which can take between six and twenty-four months and cost three to seven percent in fees.

The firm said it has watched families lose fortunes because they kept assets in their personal names and waited too long to secure protection. It stressed that successful families build their structures early, document all decisions properly, and move their crypto into insured, bankruptcy-remote institutional custody.