The company behind the fourth-largest cryptocurrency has issued a crucial warning to its community about a rapid increase in scams designed to exploit investors and siphon off their funds. This alarming trend has gained traction following the conclusion of the recent Swell conference and the launch of the first spot XRP ETF in the United States, two events that appear to have attracted the attention of malicious actors.
In a message shared on X, the team emphasized the need for caution, particularly highlighting the tactics employed by fraudsters. CEO Brad Garlinghouse previously signaled a shift in scamming techniques during a July warning, where he discussed the emergence of fraudulent videos across social media platforms. These videos often solicit individuals to send XRP to a specific address with the promise of receiving double the amount in return—an offer that is, as history has taught many, too good to be true. Unfortunately, those who fall prey to these scams have never reported receiving any tokens back.
This warning comes at a pivotal moment, as XRP’s value recently skyrocketed to an unprecedented high, drawing heightened retail interest. The company has reiterated its stance, clarifying that it will “NEVER” request XRP to be sent to them, urging investors to remain vigilant against these deceitful efforts.
In addition to the surge of fake live videos, the recent launch of the US-based spot XRP ETF has contributed to the increase in fraudulent activities. The ETF, operated by Canary Capital and recently listed on the Nasdaq, has experienced significant trading volume, nearing $60 million on its launch day—outpacing other products like Bitwise’s Solana ETF. On the first day alone, the ETF recorded total net inflows of approximately $250 million, bolstered by in-kind creations that are often not reflected in trading volumes.
Retail investors had been eagerly awaiting a spot XRP ETF for years, especially following the successful launches of Bitcoin and Ethereum products in 2024. This milestone has seemingly prompted a wave of scams targeting individuals’ XRP holdings, as bad actors look to capitalize on the increased interest.
The team’s ongoing reminders serve as a cautionary tale for investors navigating this volatile landscape, with the message clear: stay informed, be cautious, and protect your assets against potential scams.
