u.today
San Francisco-based company Ripple has issued a warning about the proliferation of XRP-related scams following a recent court ruling.
As reported by U.Today, Judge Analisa Torres of New York issued a final judgment in the closely watched SEC v. Ripple case, ordering the defendant to pay a $125 million fine for violating securities laws with its institutional sales.
Ripple framed the much-talked-about court ruling as a "historic victory" since the aforementioned sum is nowhere near close to what the agency was asking for.
After the case likely reached its long-awaited resolution, XRP went on to experience a massive price rally, soaring by more than 20% and becoming one of the most traded cryptocurrencies.
This renewed interest has also caused an uptick in XRP-related scams, according to Ripple.
Ripple has rushed to warn the XRP community about fake social media accounts impersonating the company itself as well as its executives. These fraudulent accounts typically promote bogus giveaways and airdrops to fool unsuspecting users into parting ways with their funds. "Ripple and its executives will NEVER ask you to send funds anywhere," the company stressed.
Due to its popularity, Ripple and its CEO Brad Garlinghouse frequently become impersonated by fraudsters on social media. The company even sued video hosting behemoth YouTube back in 2020 over its failure to combat crypto scam, but it eventually settled the suit the following year.
Recently, scammers started trying to capitalize on Ripple's recent foray into the stablecoin sector by creating fake tokens and passing them off as the company's official product.