XRP

Ripple, Binance impersonators target XRP holders via fake staking program

Online fraudsters attempt to lure in XRP investors by offering fake staking services with an ROI of up to 31% for a token that is not based on proof-of-stake consensus.

The cryptocurrency community has raised flags about a new scam targeting XRP (XRP) investors through a fake staking program.

Online fraudsters are impersonating major cryptocurrency firms like Ripple and Binance by creating fake websites and email imposters pretending to provide staking services for XRP.

One such website includes a blog post titled “XRP staking set to debut January 2023 for retail users,” inviting users to “stake” their XRP with unrealistic returns on investment (ROI), ranging from 12% to 27%. The fake scheme attempts to rush XRP investors’ decision by stating that only the first 10,000 accounts will receive a higher ROI.

The fake website provides a well-crafted clone of Ripple’s website, ripple.com, by copying the original layout and fonts and linking some of its previous blog posts. The impersonators also attempted to add more credibility to their posts by adding information about the importance of self-custody using major hardware wallets, such as Ledger or Trezor.

The scam website has a lot of mirror domains with “.org.th” or “.com.ve” endings, targeting XRP users from all over the world.

A phishing website offering XRP staking services.

The XRP staking website scam is accompanied by imposter emails impersonating Binance, offering up to 31% ROI on XRP staking. An industry enthusiast, RipplePandaXRP took to Twitter on Jan. 21 to warn the XRP community about the scam.

“Do not send your XRP to an unknown address and always check the address to see if it is a legit site,” RipplePandaXRP wrote.

Related: Ripple CEO: XRP lawsuit resolved by June, SEC conduct ‘embarrassing’

That said, the real Binance exchange actually offers decentralized finance (DeFi) staking for XRP as part of its Binance Earn program. However, Binance’s XRP DeFi staking program only allows users to earn up to 1.4% per year.

It’s important to note that XRP cannot be staked because it doesn’t run with a proof-of-stake (PoS) system like major PoS cryptocurrencies such as Ether (ETH). Instead, XRP transactions rely on a network of “unique nodes” that agree on which transactions can be processed in the network.

Investors are advised to conduct thorough research to ensure the legitimacy of a platform before making any investments.

Ripple CEO optimistic about US ‘regulatory clarity for crypto’

Support for cryptocurrency regulation in the United States is “bipartisan & bicameral,” according to Ripple CEO Brad Garlinghouse.

Ripple’s CEO, Brad Garlinghouse, shared in a Jan. 3 Twitter thread that he’s “cautiously optimistic” about the United States gaining “breakthrough” regulatory clarity for the cryptocurrency industry in 2023.

To mark the first day of the 118th Congress, Garlinghouse shared his hopes of 2023 being the year the U.S. gained regulatory clarity for crypto, adding that support for regulation is “bipartisan & bicameral.”

Garlinghouse said the U.S. was not starting with a “blank slate” for regulation, referencing bills such as the Securities Clarity Act, the Responsible Financial Innovation Act and the Clarity for Digital Tokens Act as examples.

According to the Ripple CEO, “the stakes couldn’t be higher.” He added that “no bill is perfect and there likely never will be one that satisfies everyone” and attempts to pursue a perfect bill shouldn’t stall Congress’ progress in creating crypto regulations and legislation.

The U.S. is behind Singapore, the European Union, Brazil and Japan when it comes to crypto legislation and regulations, Garlinghouse opined.

He claimed the lack of a coordinated effort to implement a regulatory framework both globally and in the U.S. “continues to push business to countries [with] lower regulatory bars,” resulting in “sometimes catastrophic results,” such as the implosion of Bahamas-headquartered FTX.

Related: SEC seeks to keep Hinman documents hidden in Ripple case

Ripple is a financial technology company operating the RippleNet global payment network along with its cryptocurrency XRP (XRP).

In December 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple alleging the company sold XRP as an unregistered security.

The SEC argued Ripple raised billions through XRP sales and failed to register the offerings as securities as required by law. Ripple denied the allegations claiming XRP is a currency, not a security.

In October, Garlinghouse told panelists at the D.C. Fintech Week conference that he expects the case against the firm to conclude during the first half of 2023 but admitted that it was hard to predict.

The case is still ongoing with no clear sign of when it will end.

Is Ripple poised to settle with SEC this week? Crypto Twitter weighs in

Former U.S. congressional candidate January Walker said a potential settlement would be a loss for the “whole world” and Web3.

Rumors suggesting the legal battle between Ripple Labs and the United States Securities and Exchange Commission (SEC) is coming to an end have continued to circulate, prompting the crypto community to weigh in on the matter.

Speculation is rife about a potential settlement as early as Dec. 15, which was shared in a Dec. 10 ask-me-anything (AMA) with Cardano founder Charles Hoskinson, noting he had heard rumors that the case would be settled on Dec. 15 — he later reiterated that it was only rumored and that he didn’t necessarily believe it to be true.

Meanwhile, Cointelegraph has also come to understand that the rumors are unsubstantiated.

Despite this, there is still plenty of commentary about what a settlement would mean for Ripple and the wider crypto industry.

In a Dec. 12 Twitter post, pro-crypto former U.S. congressional candidate January Walker opined that an unfavorable settlement from Ripple would be a “loss for the whole world & WEB3,” adding:

“The world follows the actions of the USA, and how the government handles one of us, sets precedence for how they handle all of us,” Walker said, calling for the industry to “work together.”

David Gokhshtein, the founder of blockchain-focused media company Gokhshtein Media, weighed in as well, commenting in a Dec. 10 Twitter post: “We need Ripple to win this case and not settle,” which he said would be a worst-case scenario. 

“Worse case scenario is Ripple settles, but I don’t know if they’ll provide clarity for the entire industry,” he added.

During the Dec. 10 AMA, Hoskinson also said that a settlement could have “catastrophic implications for the industry one way or the other.”

Meanwhile, crypto attorney Jeremy Hogan, a partner at Hogan & Hogan, says there are several possible outcomes. In a Dec. 10 YouTube video, Hogan told his 157,000 subscribers that he thought there was roughly a 50% chance that Ripple wins, but a “110.6% chance of something happening shortly.”

The lawyer predicted that if Ripple wins, the most likely reason would be “it had no legal obligation to purchasers of XRP after the sale occurred, no post sale obligations, in other words there can be no investment contract without an investment contract.”

“The evidence is clear in the Ripple case that there is no ongoing legal relationship between Ripple and XRP purchasers. There’s just none, and the SEC has failed to address that problem,” he added.

However, he also backed an earlier Nov. 4 prediction by defense lawyer and former federal prosecutor James Filan that the case will be decided on or before March 31, 2023, calling it a “proclamation from a legal God.”

Related: Investors increasingly confident of Ripple’s victory over SEC: CoinShares

Ripple CEO Brad Garlinghouse told panelists at the Oct. 11 DC Fintech Week conference that he expects the case against the firm to conclude during the first half of 2023 but admitted that it was hard to predict.

He has previously said Ripple would consider a settlement with the SEC on the condition XRP is not classified as a security.

Ripple CTO shuts down ChatGPT’s XRP conspiracy theory

An AI chatbot alleged Ripple can secretly control its blockchain through an undisclosed backdoor in the network’s code and has been ridiculed by the firm’s CTO.

Ripple’s chief technology officer has responded to a conspiracy theory fabricated by Artificial Intelligence (AI) tool ChatGPT, which alleges the XRP Ledger (XRPL) is somehow being secretly controlled by Ripple.

According to a Dec. 3 Twitter thread by user Stefan Huber, when asked a series of questions regarding the decentralization of Ripple’s XRP Ledger, the ChatGPT bot suggested that while people could participate in the governance of the blockchain, Ripple has the “ultimate control” of XRPL.

Asked how this is possible without the consensus of participants and its publicly-available code, the AI alleged that Ripple may have “abilities that are not fully disclosed in the public source code.”

At one point, the AI said “the ultimate decision-making power” for XRPL “still lies with Ripple Labs” and the company could make changes “even if those changes do not have the support of the supermajority of the participants in the network.”

It also contrasted the XRPL with Bitcoin (BTC) saying the latter was “truly decentralized.”

However, Ripple CTO David Schwartz has called the bot’s logic into question, arguing that with that logic, Ripple could secretly control the Bitcoin network as it neither can be determined from the code.

The bot was also shown to contradict its own statements in the interaction, stating that the main reason for using “a distributed ledger like the [XRPL] is to enable secure and efficient transactions without the need for a central authority,” which contradicts its statement that the XRPL is managed centrally.

Related: Ripple files final submission against SEC as landmark case nears end

ChatGPT is a chatbot tool built by AI research company OpenAI which is designed to interact “in a conversational way” and answer questions about almost anything a user asks. It can even complete some tasks such as creating and testing smart contracts.

The AI was trained on “vast amounts of data from the internet written by humans, including conversations” according to OpenAI and warned because of this some of the bot’s reponses can be “inaccurate, untruthful, and otherwise misleading at times.”

OpenAI CEO Sam Altman said upon its release on Nov. 30 that its “an early demo” and is “very much a research release.” The tool has already seen over one million users according to a Dec. 5 tweet by Altman.

Ethereum founder Vitalik Buterin also weighed in on the AI chatbot in a Dec. 4 tweet saying the idea that AI “will be free from human biases has probably died the hardest.”


Ripple CTO shuts down ChatGPT’s XRP conspiracy theory

An AI chatbot alleged Ripple can secretly control its blockchain through an undisclosed backdoor in the network’s code and has been ridiculed by the firm’s chief technology officer.

Ripple’s chief technology officer has responded to a conspiracy theory fabricated by Artificial Intelligence (AI) tool ChatGPT, which alleges the XRP Ledger (XRPL) is somehow being secretly controlled by Ripple.

According to a Dec. 3 Twitter thread by user Stefan Huber, when asked a series of questions regarding the decentralization of Ripple’s XRP Ledger, the ChatGPT bot suggested that while people could participate in the governance of the blockchain, Ripple has the “ultimate control” of XRPL.

Asked how this is possible without the consensus of participants and its publicly-available code, the AI alleged that Ripple may have “abilities that are not fully disclosed in the public source code.”

At one point, the AI said “the ultimate decision-making power” for XRPL “still lies with Ripple Labs” and the company could make changes “even if those changes do not have the support of the supermajority of the participants in the network.”

It also contrasted the XRPL with Bitcoin (BTC) saying the latter was “truly decentralized.”

However, Ripple chief technology officer David Schwartz has called the bot’s logic into question, arguing that with that logic, Ripple could secretly control the Bitcoin network as it neither can be determined from the code.

The bot was also shown to contradict its own statements in the interaction, stating that the main reason for using “a distributed ledger like the [XRPL] is to enable secure and efficient transactions without the need for a central authority,” which contradicts its statement that the XRPL is managed centrally.

Related: Ripple files final submission against SEC as landmark case nears end

ChatGPT is a chatbot tool built by AI research company OpenAI which is designed to interact “in a conversational way” and answer questions about almost anything a user asks. It can even complete some tasks such as creating and testing smart contracts.

The AI was trained on “vast amounts of data from the internet written by humans, including conversations,” according to OpenAI, and warned that because of this, some of the bot’s responses can be “inaccurate, untruthful, and otherwise misleading at times.”

OpenAI CEO Sam Altman said upon its release on Nov. 30 that it’s “an early demo” and is “very much a research release.” The tool has already seen over one million users, according to a Dec. 5 tweet by Altman.

Ethereum founder Vitalik Buterin also weighed in on the AI chatbot in a Dec. 4 tweet, saying the idea that AI “will be free from human biases has probably died the hardest.”


Coinbase announces its wallet will stop supporting BCH, ETC, XLM and XRP, citing ‘low usage’

The crypto exchange plans to stop support for the four tokens on Dec. 5, but added any remaining funds would still be tied to users’ existing addresses.

United States-based cryptocurrency exchange Coinbase has said that starting on Dec. 5, the Coinbase Wallet will no longer support four major tokens.

On Nov. 29, Crypto Twitter users posted screenshots of help pages on the Coinbase app, saying that the wallet would no longer support Bitcoin Cash (BCH), XRP (XRP), Ethereum Classic (ETC), and Stellar (XLM) as well as their networks. The crypto firm cited “low usage” of the four tokens in its decision to stop support starting on Dec. 5.

“This does not mean your assets will be lost,” said the announcement. “Any unsupported asset that you hold will still be tied to your address(es) and accessible through your Coinbase Wallet recovery phrase.”

Source: Coinbase

This story is developing and will be updated.

Coinbase Wallet will stop supporting BCH, ETC, XLM and XRP, citing ‘low usage’

The crypto wallet plans to stop support for the four tokens on Dec. 5, but any remaining funds will still be tied to users’ existing addresses.

Coinbase Wallet will no longer support four major tokens as of Dec. 5.

In a Nov. 29 notice on its help pages, Coinbase said the wallet will no longer support Bitcoin Cash (BCH), XRP (XRP), Ethereum Classic (ETC) and Stellar Lumen (XLM), as well as their associated networks. The crypto firm cited “low usage” of the four tokens in its decision.

“This does not mean your assets will be lost,” said the announcement. “Any unsupported asset that you hold will still be tied to your address(es) and accessible through your Coinbase Wallet recovery phrase.”

Source: Coinbase

The announcement specifically refers to Coinbase’s app, Coinbase Wallet, and not the exchange itself delisting the tokens. The firm previously suspended trading for XRP in January 2021 in response to the United States Securities and Exchange Commission taking legal action against Ripple, a case that is still ongoing. It’s unclear what led to its wallet app removing support for BCH, XLM and ETC.

Related: Crypto Twitter reacts to Binance CEO’s deleted tweet about Coinbase’s Bitcoin holdings

Coinbase has backed a group of investors filing a lawsuit against the U.S. Department of Treasury over its Office of Foreign Asset Control’s sanctions against crypto mixer Tornado Cash. The firm reported in November that its transaction revenue fell 44% from roughly $655 million in the second quarter of 2022 to $366 million in the third quarter.

Investors increasingly confident of Ripple’s victory over SEC: CoinShares

XRP investment products have seen a third consecutive week of inflows, suggesting investors may be increasingly confident of Ripple’s victory.

Recent developments in the Ripple vs. Securities and Exchange Commission (SEC) case appear to have bolstered investor confidence in XRP (XRP)-tied investment products, according to investment data from CoinShares’ head of research, James Butterfill. 

In its latest Digital Asset Fund Flows published on Nov. 7, Butterfill noted that XRP investment products have seen a third consecutive week of institutional inflows, clocking $1.1 million.

Butterfill said the figures imply “improving investor confidence as the SEC case against Ripple looks increasingly fragile.”

The last few weeks have seen Ripple Labs gaining increasing support from heavy hitters in the crypto industry including Coinbase and the Blockchain Association. 

In a Nov. 4 post, General Counsel for Ripple Stuart Alderoty announced to his 89,000 followers that, “A dozen independent voices – companies, developers, exchanges, public interest and trade assoc’s, retail holders” had offered their help to explain how “dangerously wrong the SEC is.”

Other entities in support of Ripple include nonprofit organization Investor Choice Advocates Network, crypto mobile app SpendTheBits and the Crypto Council for Innovation, as well as the XRP “decentralized community.”

In total, there are 12 independent entities pledging legal support for Ripple.

However, despite the support and both sides calling for a summary judgment, the case could still take months, according to Ripple CEO Brad Garlinghouse, who spoke at DC Fintech Week on Oct. 11.

Garlinghouse speculated that the case could be wrapped up by the first half of 2023, but admits that is only a guess.

Related: Judge rules LBRY video platform’s token is a security in case brought by the US SEC

A recent ruling by the United States District Court in favor of the SEC against blockchain-based file-sharing and payment network LBRY could complicate the Ripple case as well. 

Jeremy Hogan, Partner at Hogan & Hogan, told his 238,000 followers he expects the results of his case to “make its way into the SEC’s final brief in the Ripple case.”

Crypto lawyer John Deaton appears to still be bullish about Ripple’s chances of winning the case.

In a Twitter post, Deaton said the recent ruling “doesn’t shake my confidence AT ALL,” teasing a lengthier explanation for his 224,000 followers on Nov. 8. 

You have our swords: 12 independent entities pledge legal support for Ripple

The evidence is mounting as “friends of the court” line up in support of Ripple Labs.

Fintech firm Ripple is garnering more support from the crypto and finance industry in its ongoing battle with the United States Securities and Exchange Commission (SEC).

On Nov. 4, Ripple CEO Brad Garlinghouse proudly tweeted that the number of companies, developers, exchanges, associations and investors officially supporting the firm has reached 12.

The pile of amicus briefs being filed is mounting up according to Ripple Labs general counsel Stuart Alderoty.

An amicus brief is a legal document filed in appeals cases to aid the court by providing extra relevant information or arguments. These briefs are filed by amicus curiae, a Latin phrase that translates to “friend of the court.”

“It’s unprecedented (I’m told) to have this happen at this stage,” Garlinghouse exclaimed.

On Nov. 3, the SEC filed a motion to extend the time to file all reply briefs until Nov. 30. It asked Judge Analisa Torres to order that any additional amicus briefs be filed by Nov. 11.

Alderoty mocked the SEC’s response claiming that the agency “needs more time, not to listen or engage, but to blindly bulldoze on.” Garlinghouse had previously hoped for a conclusion in the first half of 2023, but with the evidence mounting, the SEC could drag it out longer.

The most recent amicus brief was filed by Cryptillian Payment Systems on Nov. 3 as confirmed by defense lawyer James K. Filan.

Veri DAO also joined the list of Ripple supporters on Nov. 3 with its own amicus brief.

That growing number of supporters that have already filed briefs include Coinbase, the Chamber of Digital Commerce, the Crypto Council for Innovation, the Blockchain Association, Valhil Capital, I-Remit, Spend The Bits, Tapjets, the Investor Choice Advocates Network (ICAN) and John Deaton on behalf of more than 75,000 XRP (XRP) investors.

Related: ‘Well worth the fight’ — Ripple counsel confirms Hinman docs are in their hands

The U.S. securities regulator took action against Ripple in December 2020, accusing the company and its executives of conducting an unregulated securities sale of its XRP token.

Almost two years later, the battle is still raging on but support for Ripple is growing as its case strengthens. Garlinghouse has previously stated that Ripple would consider a settlement with the SEC, providing that XRP is not classified as a security.

Ripple reports XRP holdings below 50% for the first time

The firm emphasized that its rather large XRP ownership is decreasing and that it only “operates 4 out of 130+ validator nodes on the XRPL.”

Ripple Lab’s XRP (XRP) token holdings have dropped below 50% of the total circulating supply for the first time in the company’s history.

Ripple has faced criticism in the past by some that have raised questions over the firm’s significantly large ownership of XRP, arguing that it gives the company centralized control over its XRP Ledger (XRPL).

In a Q3 report published on Oct. 27, Ripple once again refuted that criticism while also pointing out that its XRP holdings continue to decline, falling below 50 billion tokens, or 50% of the total supply.

“Critics have pointed to the company’s XRP ownership as an indicator that the XRP Ledger is controlled by Ripple. This is not true,” Ripple stated, adding that:

“The XRP Ledger (XRPL) uses Federated Byzantine Consensus to validate transactions, add new features, and secure the network, which means that each validator node gets one vote regardless of how much XRP they own.”

The firm went on to state that it “currently operates 4 out of 130+ validator nodes on the XRPL.”

Ripple disclosed in the report that its total net sales (sales minus purchases) of XRP for Q3 was down to $310.68 million compared with $408.9 million in Q2.

“Ripple has continued to sell XRP only in connection with ODL transactions, and ODL volumes have ramped up as Ripple’s ODL [On-Demand Liquidity] business expanded globally,” the report reads.

One of Ripple’s key business offerings is its cross-border payments service ODL, and the company outlined that it continued to expand the product in Q3 via a partnership with forex firm Travelex to facilitate transactions between Brazil and Mexico.

Related: Ripple’s lead engineer to exit after nearly a decade with the firm

SEC battle update

Ripple also commented on its lengthy legal dispute with the United States Securities and Exchange Commission (SEC), after scoring a big win relating to the elusive William Hinman documents earlier this month.

The documents in question relate to a speech from former SEC division director Hinman in which he describes the regulatory status of Bitcoin (BTC) and Ether (ETH) in terms that may help Ripple’s case, and contradict the SEC’s arguments:

“Since Hinman’s market moving speech, the SEC continues to deliberately create ambiguity, instead of providing clear guidance, and uses that ambiguity to bring enforcement actions to stifle crypto innovation in the United States.”

“In terms of next steps, in November, the SEC and Ripple will file reply briefs, and, from there, await the Judge’s decision on the motions,” the report adds.

XRP is down 2.4% over the past 24 hours to sit at $0.46 at the time of writing but has gained 3.7% over the past week. Unlike a host of other major assets that hit new all-time highs last year, XRP’s peak was almost five years ago at $3.40 on Jan. 7, 2018.