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Ripple CTO Issues Crucial Warning About an Ongoing Scam

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Ripple CTO Issues Crucial Warning About an Ongoing Scam

  thecryptobasic.com 13 h

Ripple CTO Issues Crucial Warning About an Ongoing Scam

The Ripple CTO David Schwartz has warned investors about an ongoing scam targeting users of the defunct crypto trading platform FTX.

As bankrupt cryptocurrency exchange FTX gets closer to repaying some of its customers, many bad actors have seized the opportunity to target unsuspecting users. Ripple’s chief technology officer, David Schwartz, recently warned of this ongoing attempt and urged users to exercise caution.

According to Schwartz, many FTX customers have received phishing emails from people who claim that they need to take action regarding their claims in the bankrupt exchange. These bad actors typically act on customers’ fear of missing out on their claims and may urge them to connect their crypto wallet to verify their eligibility or fast-track the claim process.

However, these are attempts to siphon user funds. In an effort to protect customers from this scheme, the Ripple CTO shared an official link to the FTX claims page. The page allows users to check the status of their claims, view their FTX balances and submit their claims at the time the window was still open.

The claims deadline ended on September 29, 2023, with the exchange now processing customer claims and liquidating assets to facilitate the payback. Ripple itself reportedly has $11 million in claims from the FTX bankruptcy estate.

There are some scam emails circulating claiming that you need to do something about your FTX claim. Don’t use the links in those emails. You can check the status of your claim at the official portal:https://t.co/4AvGkii3kh

— David «JoelKatz» Schwartz (@JoelKatz) March 21, 2024

Ripple CTO Watches Out for XRP Community

On several other occasions in the past, David Schwartz had published similar warnings, potentially saving users from losing thousands of dollars in an industry rife with fraudsters.

In January, David Schwartz issued a warning about malicious links designed to steal NFTs from OpenSea users. Last year, he also alerted the XRP community to potential scammers advertising airdrops tied to Ripple’s court victory over the SEC.

While the Ripple CTO is not against the idea of users earning passive income with their XRP assets, he has also issue warnings about potential impermanent loss with the upcoming XRP Ledger AMM amid the heightened excitement.

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