XRP Scam: Ripple Issues Warning On Rising XRP Scam After SEC Lawsuit Ruling

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As a seasoned researcher and investor with over two decades of experience in the crypto market, I find myself constantly vigilant for potential scams and fraudulent activities. The recent surge in XRP scams following Ripple’s legal battle with the SEC is a stark reminder that the digital world mirrors the real one in its dark corners.

As a researcher reporting on recent events, I’d like to bring attention to a warning issued by Ripple regarding an uptick in fraudulent activities within our community. Following a $125 million fine for violating securities laws in 1,278 institutional sale transactions, these XRP scams have arisen.

Ripple Urges Caution Amid Rising XRP Scam Activity

Following a court ruling in the SEC lawsuit, Ripple has alerted XRP holders about an increase in scams involving XRP. The company has noted that unscrupulous individuals are exploiting the judgment that resulted in a $125 million fine for Ripple, by launching phishing campaigns.

And once again with Wednesday’s historic victory, we’ve seen an uptick in scams.
Be cautious about fraudulent “Ripple” profiles, impersonating executives who claim to offer “XRP Giveaways” or “XRP Airdrops”. Remember, Ripple and its officials never request money transfers from users.
— Ripple (@Ripple) August 9, 2024

Most frequently, these deceitful schemes involving XRP are propagated through social networking sites. On occasion, they disguise themselves as Ripple company officials or present false prize raffles.

Ripple made clear that neither the company nor its top executives will ever ask users to transfer XRP tokens or participate in promotional activities promising profit returns. They have cautioned XRP holders about the prevalent “airdrop” and “doubling” scams, urging them to remain vigilant.

Scammers Create Fake Accounts of Ripple Executives

One concerning development observed by the company is the emergence of bogus profiles mimicking influential individuals, even the CEO, Brad Garlinghouse. These phony profiles might display artificial intelligence-generated images and fabricated qualifications, all designed to trick users into thinking they’re genuine.

Typically, an XRP scam initiates by presenting false promises of rewards, such as claiming that individuals will receive more XRP if they first send a certain amount of it.

Regarding these deals, the company has clearly declared them as fraudulent. Additionally, in April, the company emphasized that it would never ask for XRP from its customers. They strongly advised the community to report any such solicitations to the appropriate authorities.

Ripple’s RLUSD Stablecoin Testing Also Targeted

Additionally, the XRP scam has served as a warning about possible fraud in the realm of the RLUSD stablecoin testing. While Ripple has initiated private beta testing for RLUSD on both the XRP Ledger and Ethereum‘s main network, it is important to note that the stablecoin has not yet received a license.

More recently, the company has issued a caution on its formal platform, advising users to be wary of software claiming to provide early access to our Released Liquid Stabilized Dollar Asset (RLUSD).

Following initial reports, it was suggested that 1 billion RLUSD tokens were produced and distributed. However, this has sparked disagreements and raised concerns within the community. The company has since clarified that these reports are unfounded and urged the public to obtain information from legitimate sources to avoid falling prey to scams.

Ripple Stablecoin RLUSD Private Beta Live On XRP Ledger & Ethereum Mainnet

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2024-08-09 21:22