Phony Ripple Stablecoin Targets XRPL Users in Scam

Scammers circulate fake Ripple USD (RLUSD) tokens on the XRP Ledger, exploiting hype around Ripple’s stablecoin launch. Ripple confirms RLUSD isn’t released.

Scammers have started circulating a fake Ripple USD (RLUSD) token on the XRP Ledger (XRPL) to take advantage of the excitement surrounding Ripple’s planned stablecoin launch. The anticipated launch of the official RLUSD, slated to take on industry leaders like Tether and Circle in the stablecoin space, is scheduled to coincide with the fraudulent activities. After the initial announcement of the stablecoin in April of this year, Monica Long, the president of Ripple, has hinted that the coin’s launch may take place later in 2024.

Ripple Stablecoin Has Not Yet Been Released

In a post on the social networking site X, well-known XRP community member Krippenreiter emphasized the seriousness of the matter by saying, “Several reposts are circulating that promote the early issuance of RLUSD, which is NOT true.” I also discovered an AMM pool that had previously drawn a few victims. He provided essential instructions on how users can confirm the legitimacy of RLUSD tokens on the XRPL.

To help consumers distinguish between authentic RLUSD tokens, Krippenreiter recommended multiple ways of verification:

Account Ancestry: To find connections to early Ripple accounts, users must carefully examine the issuer’s “r-address” using any XRPL-based explorer.

Official Communications: It is imperative to cross-check official press releases found on the Ripple and RippleX websites.

Conformity with XRPL Standards: Verifying that the stablecoin follows the recommended procedures, such as managing issuer wallets, as stated on xrpl.org.

Authorization Requirements: By regulatory requirements, legitimate RLUSD issuing accounts must set up “Require Auth” settings to create authorized trust lines.

Multi-Signature Security: A configuration will probably be used to secure a valid issuing account.

The creator of XRPL Labs, Wietse Wind, also expressed worries about the misleading tokens. “People are starting to post screenshots on the XRP Ledger, leading me to believe that RLUSD has already been distributed.” It has yet to be distributed. These are fictitious tokens that con artists have created to sell worthless assets via AMM or the DEX. Don’t interact,” he said through X.

Mayukha Vadari, Senior Software Engineer at RippleX, verified that “Ripple has yet to launch its RLUSD stablecoin,” adding to the discussion. Vadari responded to the criticism of the company’s initial stablecoin announcements by saying, “IMO you have to balance it out with telling people what to expect – you’ll have the scam risk regardless, even post-launch, or pre-announcement with guesses of what the ticker will be.”

Vet, the XRP Ledger dUNL’s operator, released more cautions. Speaking on X, he underlined the value of being watchful, saying, “Scammers are taking advantage of you if you don’t stay vigilant.” Vet further cautioned customers to avoid scams by making sure the product is being given directly by Ripple and that only the issuer account is unique.

The price of XRP at press time was $0.50.