Ripple CTO Issues Critical Scam Warning to XRP Army

Ripple chief executive officer (CTO) David Schwartz has published a crucial scam warning for the XRP army and the global cryptocurrency community.

Citing a tweet published by an account that impersonated @loopringorg – the official X handle of the Loopring protocol – the post mentioned a security breach suffered by Loopring and a large amount of customer funds lost to hackers and “user compensation claims.”

Schwartz warned that this was a scam message: “Caution! This is a scam post!” By now, the fake account has been quickly suspended by the X team, and the Ripple CTO edited his original post by adding a link to an actual tweet published by @loopringorg. In that tweet, the project’s team shared details of the incident, explaining what really happened.

Loopring smart wallets breach

The post published by @loopringorg revealed that a few hours ago some Loopring Smart Wallets suffered from a hacker attack. The hacker falsely posed as the wallet owner, resetting ownership and withdrawing assets from the targeted wallets.

The hacker attack was successful as the culprits managed to compromise Loopring’s 2FA service and gained approval for the above-mentioned recovery from the Official Loopring Guardian. All operations connected with the Guardian service have been suspended for now, while the team is collaborating with Mist security experts as to how the 2FA service was breached.

The Loopring team is now actively working with law enforcement and security experts as they are attempting to track down the hacker. The two hacker addresses were shared in the post as the Loopring team asked the crypto community for assistance: “If you have any information that could help us track down the hacker, please share it with us.”

Ripple CTO’s earlier scam warning

As reported by U.Today last week, Schwartz addressed the XRP community on a similar issue. He shared a screenshot of a direct message received by another X user, from someone who called themselves the X support team.

The message stated that this user’s account was “under investigation for copyright violations” and urged the user to complete a form accessible through the link added to the message. Should the form not be filled out within 24 hours, the scammer claimed, the account would be suspended. The Ripple CTO said that that screenshot was fake.

About the author

Yuri Molchan

Yuri is interested in technology and technical innovations. He has been writing about DLT and crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. He has written for multiple crypto media outlets.

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.