The official X handle of Ripple issues a critical warning to XRP holders following its legal victory against the U.S. Securities and Exchange Commission (SEC).
In an X post yesterday, the leading crypto payments company highlighted a surge in scam attempts targeting XRP community members.
Ripple Issues New Warning
According to Ripple, these malefactors are leveraging Wednesday’s historic victory against the SEC to scam unsuspicious investors.
In particular, Ripple cautioned the community to be wary of fake social media accounts impersonating the company or its executives, often used to promote fraudulent XRP giveaways and airdrops.
Ripple emphasized that it will never ask the community to send funds to participate in such schemes. This suggests that any request for funds from any Ripple-affiliated account should be considered suspicious.
Not New
Notably, Ripple quoted an old tweet from its chief technology officer (CTO) David Schwartz, who also issued a similar warning over a year ago following the release of the summary judgment decision on July 13, 2023.
Recall that after Ripple secured a partial victory in the summary judgment decision last year, bad actors launched numerous fraudulent XRP giveaways to exploit gullible market participants. Besides creating fake social media accounts, these scammers made AI-cloned videos of Ripple CEO Brad Garlinghouse announcing malicious XRP giveaways.
Using a Ponzi scheme strategy, the scam required participants to send XRP to a specific address, promising to return up to 1,000% of any amount sent. This malicious activity reduced drastically after Ripple and other XRP enthusiasts exposed it.
Fraudulent XRP Giveaway Resurfaces Following Recent Court Ruling
However, these scam attempts have resurfaced, with Ripple recently securing another major victory against the SEC. It bears mentioning that Judge Analisa Torres issued the highly anticipated final verdict in the SEC v. Ripple lawsuit on August 7.
This decision ended in a partial victory for the parties. While the judge reduced the penalty amount to $125 million compared to the $2 billion the SEC requested, she imposed a permanent injunction on future XRP sales to U.S. institutions.
The injunction mandates Ripple to obtain a registration statement from the SEC before it can sell XRP to institutional clients. At the moment, there are speculations that the parties could appeal the decision.
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