Ripple’s David Schwartz highlights confidence in evading phishing scams following co-founder’s major XRP loss

Ripple’s Chief Technology Officer, David Schwartz, recently expressed his confidence in being able to evade phishing scams on social media platform X.

Schwartz’s comments were in response to a post by Cory Doctorow, an X user, who detailed how he was deceived into losing over $8000 by a scammer impersonating his bank. The incident, occurring over the Christmas holidays, involved the scammer asking for Doctorow’s bank details, leading to a significant financial loss.

Schwartz expressed a mix of empathy and confidence in the face of such scams, stating his belief in his ability to evade similar threats. However, he also acknowledged the universal risk of falling prey to such deceptive tactics, indicating that no one is entirely immune.

This conversation occurs against a backdrop of recent security breaches impacting prominent figures within the cryptocurrency sector. Notably, Chris Larsen, Ripple’s co-founder, suffered a considerable loss. Hackers were allegedly able to access his accounts and made away with 213 million XRP tokens, worth around $112.5 million. Larsen was quick to specify that the breach affected his personal accounts rather than compromising Ripple’s network or the XRP token infrastructure, alleviating concerns over the company’s security measures.

The breach of Larsen’s accounts prompted swift action from the cryptocurrency industry. Richard Teng, CEO of Binance, announced that the exchange had immediately frozen the exploiter’s address to stop further misuse of the stolen assets.

Larsen revealed that the stolen XRP was being shuffled through multiple exchanges, such as MEXC, Gate, Binance, Kraken, OKX, HTX, and HitBTC. This maneuver by the hackers is a perfect example of the lengths to which cybercriminals will go to launder stolen cryptocurrency, making it difficult to trace and recover.

In a broader context, these security incidents are also indicative of the sophisticated strategies employed by scammers to target the cryptocurrency community. For example, an AI-generated “deepfake scam video” impersonating Ripple CEO Brad Garlinghouse once duped XRP users into sending their tokens to a fraudulent address with the illusion of doubling their investment.

Schwartz has also been vocal about the threats posed by such scams, like those targeting users of the NFT marketplace OpenSea. He has shared screenshots of phishing emails sent to potential victims, highlighting the ongoing need for vigilance among users of digital asset platforms.