Ripple CEO Brad Garlinghouse has criticized social media platforms and regulators for their slow response to a rise in sophisticated XRP-related scams. The company’s frustration is due to a recent deepfake video featuring a highly realistic AI version of Garlinghouse promising airdrops and doubling investors’ XRP holdings.
The deepfake video, promoted as an ad on a social media platform, used a synthetic version of Garlinghouse to lure unsuspecting XRP holders. The digital double offered a fictitious airdrop and urged viewers to scan a QR code before the limited offer expired. This represents a worrying level of sophistication in crypto scams, using advanced technology to exploit investor trust.
Ripple has long fought against fraudulent content impersonating its executives and branding. The company has taken legal action against YouTube for failing to address such content, highlighting the ongoing struggle platforms face in policing their digital frontiers.
There is a wider industry concern about whether social media giants are doing enough to protect users from harmful and deceptive content, especially in the fast-paced and often opaque world of crypto. The SEC’s recent social media mishap raises questions about regulatory preparedness.
Scammers hijacked the official SEC social media account and spread false information about the approval of spot-based Bitcoin exchange-traded funds. This breach exposes a potential wider vulnerability within the financial regulatory landscape, raising questions about data security and incident response protocols.
Ripple’s chief legal officer, Stuart Alderoty, criticized the SEC for failing to adhere to its own cybersecurity disclosure rules. Senators Thom Tillis and J.D. Vance have written to the commission requesting an explanation for its breach in cybersecurity.
The XRP market cap is currently at $30.369 billion. This incident highlights the regulatory uncertainty surrounding cryptocurrency, where uncertainties regarding asset classification and market rules provide a fertile ground for scammers.
The Garlinghouse deepfake incident and the SEC’s security lapse serve as stark reminders of the evolving threats in the crypto space. Platforms need to urgently improve their content moderation, using advanced detection tools and prioritizing user protection. Regulators need to clarify the crypto rulebook and tighten their own security measures. For investors, vigilance is paramount. Verifying information, practicing healthy skepticism, and demanding greater platform and regulatory accountability are crucial defenses against digital scams.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Thom Tillis, Stuart Alderoty, Brad Garlinghouse, J.D. Vance |
| Companies | Freepik, Ripple, SEC, YouTube, TradingView.com |
| Currencies | XRP, Bitcoin |
| Securities | None |
