In the “community-driven” XRP data collector xrplorer, it was alleged that XRP gift scams on social media were stolen for about 1.5 million dollars – 8.5 million tokens.
Since 2019, fraudsters have managed to show them as prominent community members using fake celebrities and in this way steal 8.5 million XRP from users.
The researchers reported that the funds were later converted into cash through popular crypto exchanges. In this gift scam, scammers pose as celebrities or leading community members and promise a gift to their users. In the fake gift trap, users send money to prove that they have a crypto address and receive a so-called gift in proportion to the amount they send.
In 2019-2020 more than 8.5M XRP was cashed out from the same scams, through normal exchanges and swap services. For some services, a huge part of the business comes these scams. pic.twitter.com/N0tvnk1aJv
— xrplorer.com (@xrplorer) April 23, 2020
According to Xrplorer, these scammers have at least 5.9 million XRPs with many funds laundered every day through exchanges and clearing services. Due to the nature of frauds, funds are already laundered before the victims realize what happened.
While it is not possible to independently verify the data of Xrplorer, it is well known that fraudsters are run on various social media platforms, computer hackers capture verified accounts to create fake gifts. Scams also hack popular YouTubers, and it takes some time for YouTube to return their accounts to them.
Against frauds, Ripple CEO Brad Garlinghouse sued YouTube and claimed that Google’s video sharing platform did not put pressure on XRP gift scams, which “caused irreparable harm to their public image, brand and reputation”. Although he does not mention the potential damages to be paid, Garlinghouse said the funds will be used to repay fraud victims.