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Almost 500,000 XRP Tokens Saved from Being Sent to Scammers

Mon, 01/04/2021 - 17:28
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Alex Dovbnya
Scammers have failed to receive 444,730 XRP tokens over the past week
Almost 500,000 XRP Tokens Saved from Being Sent to Scammers
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444,730 XRP tokens have been saved from scammers in just a single week.

This was possible because of an application programming interface (API) developed by XRP Forensics, a community-initiated website for preventing fraud.

XRP Ledger Foundation, a non-profit that was launched in September to support the development of the XRPL, is encouraging exchanges to implement the API.

It makes it possible to filter out all transactions that are sent to knowingly fraudulent accounts. Furthermore, it purges all transfers with abnormally high fees.

Back in November, XRP Forensics took aim at cryptocurrency exchange HitBTC for not blocking transfers that were allegedly linked to money laundering.

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A proactive approach

As soon as scammers get their hands on ill-gotten tokens, it’s very challenging to get them back. As explained by XRP Forensics, the process of reclaiming the losses by cooperating with exchanges is too cumbersome and highly inefficient, which is it’s better to take a proactive approach:

When an individual has sent money to a scam, it is rarely returned – and even though we in collaboration with exchanges, are able to withhold many XRP every single day, the reclaiming process is often lengthy and complicated. 

An API makes sure that the tokens targeted by scammers don’t leave the potential victim’s wallet in the first place. Exchanges, meanwhile, are able to block these funds in real-time.

XRP holders frequently fall victim to scams that have infiltrated the biggest social media platforms.

In 2019, for instance, 6 million XRP tokens were sent from exchanges to giveaway scams.

XRP Forensics
Image by @xrpforensics
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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at