Ripple Warns XRP Holders of Phishing Email From Scammers

Ripple (XRP) holders have been informed by the company’s Chief Technology Officer (CTO) David Schwartz of an ongoing phishing scam that uses a cloned Ripple website to dupe users of their hard-earned crypto. Many XRP holders are said to have received this email which promises high returns on investment in the so-called new feature: The XRP Staking Platform.

The email outlined;

“One of our powerful partners, Ripple Labs Co, has recently announced a new premium feature that everybody has been asking for.” As part of the perks for using the staking platform, users were promised premium incentives, high return on investment ranging from 16% to 31% as well as a secured fund of over 5 billion XRP tokens. 

Schwartz shared a screenshot of the phishing email on his Twitter page. It was obvious that the scammers made use of a fake Binance website with the top-level domain (TLD) “.org .ph” to propagate this sham to unsuspecting users. Therefore, he explained that the email was neither sent by nor connected to Binance in any way. 

Wake up Call for Crypto Users

This warning serves as a wake-up call to users who click on links without a second thought. Users are advised to conduct due diligence before clicking on any links found in an email. Hence, they have been cautioned to pay no attention to any suspicious emails. Apart from the fact that the scammers involved Binance, Ripple has also never launched any staking program.

Rather, it was Binance that launched XRP Decentralized Finance (DeFi) sometime in August. This function allows users to stake their XRP and then receive up to 1.40% APR. Going back to the phishing email and performing a comparison between the return promised on staking, it seems so unrealistic and fake. 

Before all of this happened, Ripple has been in the spotlight, not because of its ongoing lawsuit with the Securities and Exchange Commission (SEC) but for other positive reasons.

More than a week ago, Ripple led a funding round for crypto market maker Keyrock which generated $72 million. Also, the crypto payment startup has shown interest in acquiring some assets which belong to the now-bankrupt FTX Derivatives Exchange.