Scammers revive AI deepfake, impersonation attacks as XRP ETF news spreads

Ripple Labs issued a fresh warning to the XRP community over impersonation scams and fake giveaways on the same day the launch of the first spot XRP exchange-traded fund (ETF) is likely to take place.

RippleX, the company’s development arm, told investors to watch out for fraudulent livestreams, deepfake videos, and fake investment campaigns of Ripple-endorsed promotions through its official X account on Thursday. 

“Ripple employees will never ask you to send funds, share wallet info, or join investment streams,” the RippleX team wrote. “Always verify information through Ripple and RippleXDev. Keep your XRP yours.”

The statement arrives at a time when XRP’s first US spot XRP ETF could go live today, which is likely to attract social engineering scams like those seen during “small victories” from Ripple’s legal tussle with the US Securities and Exchange Commission (SEC).

Old tactics could be revived on spot ETF launch day

Ripple CEO Brad Garlinghouse has repeatedly warned investors of how scam attempts spike whenever XRP experiences major market moves or regulatory wins. 

The most common form of fraud involves “send XRP, receive double the amount back,” but fraudsters now use advanced AI-powered deepfake tools to impersonate company executive Brad Garlinghouse.

In July, Cryptopolitan reported on a deepfake video circulated on social media, featuring an AI-generated version of Garlinghouse announcing a supposed “Ripple Rewards Program.” The video claimed that Ripple was distributing a 100 million XRP airdrop to thank supporters in celebration of its partial court victory against the SEC.

The clip, which originated from the verified X account tokenized real-world asset platform HoneyBee, displayed a fake Garlinghouse saying:

“Four years ago, we entered a battle we didn’t choose. But we fought and we won against the SEC. This is a victory for justice, innovation, and the future of crypto… Now it’s our turn to say thank you. I’m launching the Ripple Rewards program, a 100 million XRP airdrop pool created for you. Follow the instructions at financexrp.net. Thank you, XRP family. We did this together.”

Ripple’s chief technology officer David Schwartz called it an “obvious scam,” while the CEO himself shared a YouTube short insisting Ripple “will never ask you to send us XRP.”

Scam campaigns have followed Ripple’s legal journey closely since the company’s security vs commodity lawsuit with the SEC began in December 2020. Each time Ripple had a ruling in their favor, bad actors flooded social media platforms YouTube, X, and Facebook with fake airdrops, impersonation streams, and “exclusive offer” messages claiming to celebrate the win.

“A lot of scammers are taking advantage of the recent good news to try to cheat and steal,” Garlinghouse said after Ripple and the SEC agreed on a $50 million settlement to officially end the case. “There are no airdrops, giveaways, or special offers associated with this ruling.”

XRP spot ETF launch: Is today the day?

Crypto In America podcast host Eleanor Terret said late Wednesday that Tennessee-based financial firm Canary Funds had filed its Form 8-A with the US SEC for its spot XRP ETF. 

“This is the final step before it goes effective at 5:30 PM ET Wednesday once Nasdaq certifies the listing,” she wrote on X. “When that happens, the last hurdle is cleared and the first XRP spot ETF will be set to launch Thursday at market open.”

Terrett clarified that the REXShares XRPR ETF, approved and listed in September, only offered partial spot XRP exposure under the Investment Company (‘40) Act but lacked the tax efficiency of a pure spot fund. CanaryFunds’ version, structured under the 1933 Securities Act, will reportedly provide 100% XRP exposure.

Nova Dius Wealth CEO Nate Geraci said Ripple has had a remarkable turnaround from last year’s legal uncertainty.

“Just over one year ago, the SEC was appealing a court decision that XRP did not meet the legal definition of a security. On Thursday, it looks like the first ‘33 Act spot XRP ETF will launch. Hard to describe the crypto regulatory shift over the past year night and day.”

As the ETF debut clock ticked, XRP’s price continued a pullback since Tuesday’s trading session, dropping 5.1% to $2.41 from $2.54. The decline stabilized between $2.39 and $2.43 as short-term buyers entered the market. 

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