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

Ripple has alerted its community about increased fraudulent activities. According to the announcement, these XRP scams have preceded the order to pay a $125 million fine for violating securities laws in 1,278 institutional sale transactions. Consequently, since the ruling, scammers have been exploiting the situation, leading Ripple to warn its users.

Ripple Urges Caution Amid Rising XRP Scam Activity

In the wake of a recent decision made in the SEC lawsuit, Ripple has posted a warning to the XRP holders concerning a spike in XRP scams. Ripple pointed out that fraudsters have capitalized on the judgement that ended with the company ordered to pay the sum of $125 million as a fine, to launch new campaigns of phishing.

And once again with Wednesday's historic victory, we've seen an uptick in scams. 🚨🚨🚨

Please beware of scam "Ripple" accounts, fake executive accounts or others promoting "XRP Giveaways" or "XRP Airdrops." Ripple and its executives will NEVER ask you to send funds anywhere. https://t.co/uGitnz71yn

— Ripple (@Ripple) August 9, 2024

These XRP scams are primarily being spread on social media and sometimes they pretend to be Ripple executives or offer fake giveaways.

Ripple pointed to the fact that the company and top management will never ask users to transfer XRP tokens or engage in any promotional campaigns with guarantees of gaining a profit. The company has warned its XRP holders against falling victim to the “airdrop” or “doubling” scams that are currently being peddled around.

Scammers Create Fake Accounts of Ripple Executives

The company noted that one of the most alarming phenomena is the appearance of fake accounts that imitate authoritative persons, including the head of the company, Brad Garlinghouse. Such fake accounts may contain images created by AI and fake credentials to make the users believe that they are real. 

The XRP scam process mostly starts with the offer of fake giveaways, which include asking people to send a specific amount of XRP and promising to return a higher amount.

As for these offers, the firm has stated that they are a scam. Moreover, in April the company insisted it will never seek XRP from its users and recommended that the community report any such requests to the right places.

Ripple’s RLUSD Stablecoin Testing Also Targeted

Besides the XRP scam, it has alerted the public to potential fraud in relation to the testing of the RLUSD stablecoin. Despite Ripple already starting private beta testing of RLUSD on both the XRP Ledger and Ethereum mainnet, it has specified that the stablecoin is not yet licensed.

The firm recently took to its official forum to warn users against programs that are supposedly offering them early access to its own liquid stabilised dollar denominated asset, RLUSD.

Subsequently, earlier reports indicated that 1 billion RLUSD tokens had been created and issued, which raised concerns and controversies within the community. The company stated that these reports are not true and advised the public to seek information from authorized sources only to avoid scams.

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