afaik Ripple still owns 71,010,747,718 XRP and that's about 70% of the supply
You don't think XRP would go under if the authorities seized 70% of the total supply?
Not really. Price would crash and all, sure, but I think it would stabilize at some point. BTC went over 1000USD before and now is around a third of that. It still exists.
You do realize that Napster back in the day had huge investments from private funds and banks, correct? It doesn't matter what banks or funds are backing what, it's what the FBI thinks.
If Ripple gets too big and gets too much attention it is inevitably going to be raided by the FBI on accusation of money laundering, tax evasion, drug facilitation or enabling crimes, it's almost guaranteed.
From what I understand that doesn't matter. You can run your own rippled and the network stays up even if Ripple Labs goes down.