In a recent disclosure on X (formerly Twitter), Brad Garlinghouse, the CEO of the fifth biggest cryptocurrency Ripple (XRP), exposed a sophisticated scam that has left numerous investors at risk. The cryptocurrency industry, known for its rapid evolution, now faces the challenge of scammers utilizing advanced AI techniques to manipulate content and trick individuals.
Brad Garlinghouse’s warning: Fake XRP giveaway videos alert
Garlinghouse highlighted the urgent need for caution, urging investors to trust only information from official Ripple accounts. The CEO highlighted a surge in fake videos circulating on social media, specifically pointing out manipulated footage from past Ripple events combined with AI-generated audio.
In a statement, he highlighted the critical importance of verification before believing any information, cautioning against the rise of deceptive content, including the widespread circulation of fake videos.
Scam unfolds: Fake video promoting fraudulent XRP giveaways
The scam spread with the circulation of a fake video featuring Brad Garlinghouse promoting fraudulent XRP giveaways on social media. Scammers used AI tools to create deceptive content, promising participants to double the amount of XRP if they sent 1,000 XRP. However, keen observers noted differences in the video, particularly in mouth movements, prompting suspicions about its authenticity.
Also Read: Nearly $1 billion drained by exploits, hacks, and scams in 2023
Several crypto enthusiasts and influencers also shared this fake video on social media while alerting crypto investors, warning them not to fall for this deep fake scam. They emphasized not to send XRP to get double, as doing so would result in losing all of them.
Earlier this month, Pro-Bitcoin Tim Draper issued a strict warning about the rapidly evolving web3 and AI technology. Draper cited that AI is becoming smarter and can easily clone voices to scam investors. Draper urged everyone to be cautious, advising against complying with requests for money or crypto from unknown sources.
In simple terms, he stressed that if anyone claims to be him asking for funds, they are thieves. This serves as a reminder to stay vigilant in the face of deceptive schemes exploiting AI technology.
BlackRock’s fake XRP ETF filing
On the other hand, another significant rumor caused a temporary XRP price pump and dump. On Monday, November 13, 2023, a rumor circulated that the world’s biggest asset manager, BlackRock, had filed an XRP Exchange-Traded Fund (ETF) following its registration of Spot Ether ETF. This rumor caused a significant 12% XRP price surge within 30 minutes of the news. However, it lost all its gains after it was confirmed as fake news by Bloomberg ETF Expert Eric Balchunas. Additionally, during this pump and dump, total liquidations recorded by the tracker stood at around $7.17 million.