Fraudsters can take advantage of the positive news about the lawsuit against SEC and the hype around the XRP token, said CTO Ripple David Schwartz.
On July 13, the Southern District of New York court ruled in favor of Ripple Labs in a case with the SEC. Judge Analisa Torres concluded that sales and other distributions of XRP do not constitute the offer and exercise of investment contracts.
However, in her opinion, the sale of coins to large industry players violated US securities laws.
XRP quotes reacted positively to the news. Over the past day, the token has risen in price by 64.9%, the current price is $0.77.
Several major cryptocurrency exchanges have announced plans to resume token trading for US users.
Schwartz’s warning stems from repeated cases of fraud. In March 2020, the fake account of Ripple CEO Brad Garlinghouse was discovered on YouTube. The attackers offered users to send from 2 to 500,000 XRP and allegedly receive in return from 20,000 to 5 million tokens.
In April, Ripple accused video hosting of damaging reputation and brand, and in September of deliberate inaction.
Earlier, Twitter users discovered a fake extension for Google Chrome that steals password recovery passphrases. With its help, the attackers managed to steal more than 1.4 million XRP.
In September 2022, unknown persons hacked the Twitter account of PwC Venezuela, an accounting firm, to promote a fake token giveaway on behalf of Garlinghouse.
Some lawyers warned against prematurely celebrating Ripple’s victory in the case against the SEC.
Source: Cryptocurrency
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