July 14, 2023 at 09:54 GMTModified date: July 14, 2023 at 09:54 GMT
July 14, 2023 at 09:54 GMT

Ripple CTO warns of XRP scams following victory

Ripple CTO David Schwartz has urged investors to stay on high alert as bad actors are actively seeking to take advantage of yesterday’s good $XRP news…

Ripple CTO warns of XRP scams following victory

The news of XRP’s monumental win against the SEC has sent waves of excitement through the entire crypto community. Yet, amidst this exhilaration, Ripple chief technology officer David Schwartz is sounding a clarion call for caution. He has urged individuals to stay on high alert as bad actors are actively seeking to take advantage of the prevailing excitement by orchestrating scams.

He said on Twitter: “A lot of scammers are taking advantage of the recent good news to try to cheat and steal. There are no airdrops, giveaways, or special offers associated with this ruling.”

Given the nature of the crypto space, Schwartz warning is entirely warranted. Airdrop scams have become the order of the day, especially with the emergence of multiple scam-as-a-service platforms that have cumulatively stolen tens of millions of dollars from thousands of victims within months.

XRP is very well likely to become a subject of these scams over the next few days due to the spike in interest. It has been trending on Twitter following the landmark ruling and its price has surged by a staggering 66% in the last 24 hours. Also, XRP’s trading volume is up 1,760% in the same time, with more than $13.2billion worth of XRP changing hands across all exchanges.  

Both XRP and its devoted community, often referred to as the ‘XRP army’, have been relentlessly targeted by scammers leading up to the court ruling. Just last month, numerous users reported receiving fraudulent emails on a weekly basis, bearing the subject line ‘The Allocation Program’. These deceptive emails, falsely attributed to the Ripple team lured recipients into claiming rewards allegedly being distributed from the company’s reserves. Users suspected that these emails were a direct result of data breaches at Ledger or Gemini, further intensifying concerns.

In the same month, notable XRP advocate and lawyer, John Deaton fell victim to a hacking incident. The perpetrator used Deaton’s twitter profile to promote a token known as $LAW, purportedly centred around crypto regulations. They deceitfully encouraged individuals to claim the token through a phishing link.

XRP makes a comeback on exchanges

Following Ripple’s groundbreaking triumph against the SEC, several exchanges have begun to reverse their previous decisions and relist XRP. Coinbase leading the way made the significant announcement that XRP would once again be available for trading. This decision came after a thorough review of Judge Analisa Torres’ ruling, indicating a shift in perspective regarding the legal status of XRP. 

Coinbase provided further information through a follow-up tweet: “Trading is anticipated to begin later today, if liquidity conditions are met. Once sufficient supply of this asset is established trading on our XRP-USD, XRP-USDT and XRP-EUR trading pairs will launch in phases. Support for XRP may be restricted in some supported jurisdictions.”

Kraken followed suit shortly, stating that XRP trading will commence again once liquidity conditions are met. Another top exchange, Gemini is also considering relisting XRP following the ruling.

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