Beware! Ripple users targeted by fake stablecoin scam 😱🚨

Protect Yourself from Counterfeit Tokens

Scammers have started taking advantage of the buzz surrounding Ripple’s forthcoming stablecoin debut by circulating a fake Ripple USD (RLUSD) token on the XRP Ledger. This fraudulent scheme precedes the impending launch of the official RLUSD stablecoin, which is poised to rival established players like Tether and Circle in the stablecoin market. Ripple’s President, Monica Long, has hinted at a potential release date for the stablecoin later in 2024, following the initial announcement in April of this year.

No Official Launch Yet

The XRP community member, Krippenreiter, raised an alarm about the proliferation of misleading information surrounding the premature release of RLUSD. To help users discern genuine RLUSD tokens from fake ones, Krippenreiter shared the following verification techniques:

Account Ancestry: Users should inspect the issuer’s “r-address” using an XRPL-based explorer to track back to early Ripple accounts.
Official Communications: Cross-referencing with official statements on Ripple and RippleX platforms is essential.
Compliance Standards: Verifying if the stablecoin complies with best practices outlined on xrpl.org, including wallet management by the issuer.
Authorization Requirements: Legitimate RLUSD issuers are expected to enforce “Require Auth” settings for authorized trust lines, in accordance with regulatory norms.
Multi-Signature Security: A genuine issuer account would likely be safeguarded through a multi-signature system.

Wietse Wind, the founder of XRPL Labs, also cautioned against the counterfeit tokens, urging users not to engage with them. Similarly, Mayukha Vadari, Senior Software Engineer at RippleX, affirmed that the RLUSD stablecoin has not been launched yet.

Stay Alert and Avoid Scams

Vet, the operator of the XRP Ledger dUNL, echoed the need for vigilance, emphasizing that scammers prey on unsuspecting individuals. Users were reminded to verify the legitimacy of the issuer account and ensure that the product is officially endorsed by Ripple to steer clear of scams.