Chinese ‘Ripple’ Cryptoscam Steals Funds of Thousands of Investors
September 19, 2018
Over a hundred thousand of investors across the world fell victims of a new China-based crypto pyramid Ripple Reserves (Ripple Fed).
Scammers presented Ripple Reserves as advanced platform for storing XRP allegedly developed together with the members of the Ripple Foundation. The purpose of the project, as its website said, was to provide some extra options for XRP owners for cheap and fast cross-border payments with the currency.
The criminals distributed information on the project with ads in the Baidu search engine and WeChat channels amid the ban on crypto promotion on these platforms existing in the country.
Ripple spokespersons denied any involvement in the Ripple Fed and recommended to keep away from the scam.
Ripple Reserve members, in their turn, told BlockBeats about over 100,000 investors worldwide and the figure rises everyday. As they explained, the investors to the project get interest rates depending on the amount of XRP they hold and the period of time they participate in it:
“Based on the same token amount, the longer an investor’s XRPs keep in the platform, the higher interest rate he will receive. And the minimum deposit is $1000”.
Since the moment a Ripple Reserves user opens a wallet and deposits funds, the coins are stored there until expiry date set by the system comes. And customers cannot withdraw their coins until then. Obviously, this kind of project is nothing but a classic financial pyramid with referral commissions.
Remarkable is that despite its primary focus on Chinese users the company is registered in the US and its activity hasn’t been found suspicious in any way so far. In addition, total amount of funds scammers have already raised is still unknown.