On July 23, Garlinghouse took to social media to caution investors about the uptick in XRP scams. He expressed concern that scammers are exploiting market enthusiasm and community excitement to orchestrate fake schemes primarily aimed at unsuspecting XRP holders.

Garlinghouse highlighted the recent fraudulent activities on YouTube, where scammers have hijacked existing channels, rebranded them to resemble Ripple’s official accounts, and started broadcasting deceptive content that impersonates Ripple and its executives.

In an official statement, Ripple’s team clarified that these YouTube accounts are not associated with Ripple, despite their convincing appearance. Scammers have cleverly manipulated usernames to imitate Ripple’s official accounts, creating confusion among users.

These deceptive videos often offer giveaways, rewards, or investment multipliers, typically asking investors to send XRP in return for a larger payout. Garlinghouse has reiterated that neither he nor Ripple will ever ask for XRP from anyone.

As a response to the growth of these crypto scams, Ripple is proactively reporting these fake accounts and urges its community members to do the same. Ripple’s official channels remain the only trusted sources of information, and users are advised to validate account handles and links before interacting.

Garlinghouse ended his post by reminding everyone to stay alert and to remember that “if it sounds too good to be true, it probably is.”

The Ripple CEO’s warning serves as a broader caution against escalating crypto fraud during times of market recovery or increased optimism. This surge in XRP scams coincides with the recent rise in XRP’s price above $3.6 and follows positive news such as Ripple’s regulatory clarity and its legal win against the US SEC.

As XRP’s price gets closer to its all-time highs and gains momentum, scammers are leveraging this wave of optimism to ensnare more investors in their fraudulent schemes.

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The announcement, made on Monday, revealed that some malicious organizations are exploiting the public’s limited knowledge of stablecoins. They use attractive phrases like “financial innovation” and “digital assets” as bait to draw individuals into investment scams.

“These organizations take advantage of new ideas like stablecoins to promote alleged investment projects involving ‘virtual currencies,’ ‘virtual assets,’ and ‘digital assets,'” stated Shenzhen’s Office of the Special Working Group for Preventing and Combating Illegal Financial Activities in a translated notice.

The authorities also stated that these entities engage in deceptive public advertising to raise funds from the public, leading to unlawful activities such as gambling, fraud, pyramid schemes, and money laundering.

The warning is significant given the recent global interest in stablecoins. Last month, Pan Gongsheng, the governor of China’s central bank, acknowledged that stablecoins and central bank digital currencies are transforming the global payment infrastructure.

In May, Hong Kong’s Legislative Council passed a stablecoin bill, establishing a licensing regime for stablecoin issuers. And last month, the U.S. Senate passed the GENIUS Act, a landmark stablecoin bill, moving it to the House for further consideration.

Christopher Hui, Secretary for Financial Services and the Treasury in Hong Kong, hinted in a Monday interview with the local newspaper Ming Pao that the region might issue stablecoin licenses this year, but the number of licenses granted is expected to remain limited.

Disclaimer: The Block is an independent media outlet that provides news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block operates independently to deliver objective, impactful, and timely information about the crypto industry.

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The Swiss Financial Market Supervisory Authority (FINMA) identified the Yuh platform, inclusive of crypto trading, as a primary target for fraudulent schemes conducted by scammers. Marc Buerki, Swissquote’s CEO, acknowledged the surge in fraudulent activities to AI technologies, which simplify the initiation of malicious campaigns. He also assured that their internal systems remained unaffected by the counterfeit websites.

Despite attempts to reach out, Cointelegraph had not received a response from the company at the time of publishing. Fraudulent activities continue to plague the crypto sector, leading to billions of dollars in annual collective losses for users and deterring potential market entrants from acquiring digital assets.

So far in 2025, onchain incidents have resulted in losses approximating $2.1 billion. A significant portion of these losses can be attributed to wallet compromises and phishing attacks. With an increase in data leaks, it is crucial for users to stay alert,” stated cybersecurity firm CertiK in May.

Phishing attacks, social engineering strategies, deceptive websites, online impersonation, and address poisoning scams consistently rank among the most prevalent tactics used by threat actors to trick users and misappropriate funds. In April, a senior citizen was targeted in a $330 million heist through a social engineering scam, as per onchain investigator ZachXBT. This theft was categorized as the fifth-largest crypto loss in history.

Even experienced industry experts are falling victim to intricate social engineering scams. In June, crypto venture capitalist Mehdi Farooq, an investment associate at Hypersphere, revealed that a phishing attack had depleted the majority of his life savings.

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ZachXBT, a blockchain investigator, shared his observations on X last Thursday, noting that the potential for misuse in the crypto world has always been significant. However, the situation has “markedly escalated since politicians introduced memecoins and multiple court cases were dismissed, further encouraging such misconduct.”

He stated that for defrauding their followers, crypto influencers and key thought leaders face “absolutely no consequences.” ZachXBT continued, “In the current favorable environment, it has never been a worse time to engage in black hat, phishing, social engineering, and robbery activities as compared to gray hat activities.”

Slow regulatory advances are also part of the problem. The lack of enforcement on projects that fail to disclose paid advertisements and similar behavior has also fed into the supercycle, says ZachXBT.

He argued that if regulators had focused on managing this sector instead of pursuing open-source developers or blue-chip decentralized protocols, the current situation wouldn’t be so prevalent. The lack of repercussions has allowed these practices to flourish.

According to a report shared with Cointelegraph by cybersecurity firm Hacken, over $2 billion was lost to crypto hacks in the first quarter of 2025. Phishing scams accounted for $96 million of this, while rug pulls were responsible for more than $300 million.

Taylor Monahan, another blockchain detective, joined the conversation, stating that as long as scammers are making significant profits, their behavior is unlikely to change. She believes that the crypto industry is in a “difficult place” as it continues to attract and retain too many hackers and scammers.

She noted, “There are no social, financial, or legal obstacles or friction to this kind of behavior. Plus, it’s simply so easy and there’s so much instant money to be made.”

While some scammers are facing legal consequences, many continue to operate freely. The US Department of Justice recently announced the seizure of more than $225 million linked to crypto investment scams by the Secret Service. Moreover, a New Zealand man was arrested in May for his alleged involvement in a global crypto fraud operation that reportedly stole 450 million New Zealand dollars ($265 million).

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The ban was introduced by Council member Paul Dillon, who stated that crypto ATMs have emerged as a favorite instrument for scammers aiming to swindle unsuspecting victims. Dillon believes that this ban will shield Spokane residents who are vulnerable to scams linked to digital currency kiosks.

In an interview with The Spokesman-Review, a local newspaper, Dillon explained that the measure aims to ban new kiosks as well as dismantle existing ones. He pointed out that many of these kiosks are situated in impoverished neighborhoods and convenience or grocery stores.

The ban comes in response to the city witnessing a significant surge in scams related to cryptocurrency kiosks, resulting in victims losing thousands of dollars. The ban is seen as a tool to safeguard consumers from individuals who predominantly rely on digital currencies to defraud others.

Following this ordinance, operators of crypto ATMs have 60 days to dismantle kiosks throughout the city or risk facing civil violations and the revocation of their business licenses. The Spokane City Council will monitor the situation and evaluate the impact of the ordinance on the frequency of reported crimes related to crypto kiosks.

Police detective Tim Schwering revealed that money placed into these kiosks often ends up in countries like China, North Korea, or Russia. Criminals posing as law enforcement or tax officials trick victims into buying crypto at these ATMs under the pretense of protecting their money or avoiding imprisonment.

In April, the FBI reported nearly 11,000 complaints and over $246 million in losses associated with crypto ATM scams in 2024, marking a 31% increase from 2023. The elderly are particularly at risk, with two-thirds of crypto kiosk fraud victims being over 60 years old.

The post Crypto ATMs Banned in Spokane, Washington’s Second-Largest City, to Counter Scams appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

The report also showed a 24% increase in global crypto scam losses from the previous year, totaling $4.6 billion in 2024. Approximately 40% of major fraud cases involved deepfake technologies, with fraudsters increasingly leveraging sophisticated imitations of public figures and platform executives to trick users.

Bitget CEO, Gracy, spoke to Cointelegraph: “The ability of scammers to quickly generate synthetic videos, combined with the viral power of social media, gives deepfakes a unique edge in terms of scope and credibility.”

Combatting AI-driven scams requires more than technology. It demands a paradigm shift in attitudes, particularly in an era where synthetic media such as deepfakes can convincingly replicate real individuals and scenarios. Trust must be judiciously gained via transparency, continuous scrutiny, and thorough verification at every step.

The report breaks down contemporary crypto scams into three main categories: AI-produced deepfake impersonations, social engineering tactics, and Ponzi-like frauds masquerading as DeFi or GameFi projects. Deepfakes are particularly nefarious, with AI mimicking text, voice messages, facial expressions, and even behaviors.

For instance, fraudsters have used fake video endorsements from public figures like Singapore’s Prime Minister and Elon Musk to gain public trust. AI can also simulate real-time reactions, making these scams progressively harder to differentiate from reality.

As these AI-enabled scams become more complex, users and platforms must devise new strategies to stay safe. Regular security training and robust technical defenses are key for institutions. Gracy advises users to “verify, isolate, and slow down,” emphasizing the importance of verification through official websites or trusted social media accounts.

The post “Asia’s Fight Against Deepfake Scams: 87 Rings Busted in Q1 2025, Says Bitget Report” appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

There appears to be a significant number of inactive Digital Currency Exchanges (DCEs) amidst the 427 registered entities. AUSTRAC has issued a stern warning to these dormant exchanges, urging them to update their details promptly or face removal from the register.

The plan was divulged on AUSTRAC’s government website, stating the existence of several inactive DCEs. These exchanges were given the option to either voluntarily withdraw or face delisting. AUSTRAC voiced concerns over the potential misuse of inactive DCEs by scammers for illicit activities like money laundering. The regulator further emphasized the need for DCEs to stay current with their registration processes and announced plans to generate a public list of registered DCEs to help consumers avoid scams.

Brendan Thomas, AUSTRAC’s CEO, reiterated the importance of businesses updating their details as part of the registration process. He cautioned that failure to do so could lead to delisting. He stressed the importance of maintaining consumer trust and averting the misuse of DCEs. According to him, inactivity could be a valid ground for canceling a registration.

AUSTRAC’s responsibilities include the analysis of business intelligence to curb scam activities in Australia. The agency regards digital assets as a high-risk market and hence focuses a great deal of attention on them. AUSTRAC has observed a concerning surge in crypto scams, necessitating more proactive measures to avert catastrophic outcomes.

All Australian businesses intending to facilitate conversions between cash and crypto must register with AUSTRAC. The agency oversees these DCEs to detect money laundering, tax evasion, and terror financing. AUSTRAC reserves the right to delist any business identified with discrepancies.

This recent announcement builds on AUSTRAC’s previous measures, including the February 2025 crackdown on illegitimate crypto businesses, involving 13 financial institutions and over 50 crypto businesses. The operation targeted businesses that underreported or failed to report their activities, with AUSTRAC deciding which businesses warranted further legal action.

The post AUSTRAC Calls out Dormant Crypto Exchanges in Australia: Update or Face De-registration appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

“This is an unending game of cat and mouse,” states Ian Rogers, the Chief Experience Officer at Ledger, when discussing the relentless pursuit between crypto wallet companies introducing new security measures and hackers devising more sophisticated methods to breach victims’ wallets.

Rogers laments that the simplest scams often yield the best results, as they exploit users’ common mistakes. “Every day, people give away their 24-word phrases. As long as that continues, scammers will opt for the least expensive attack,” he warns, stressing, “If someone asks for your 24 words, they’re a criminal.”

Rogers points out a frequent crypto scam where unsuspecting victims are lured into responding to replies under any crypto-related Twitter post. These messages typically read, “Direct message me, I can assist you.”

He warns, “You must remember, scammers are always attempting to get your 24 words.” Jason Jiang, CertiK’s Chief Business Officer, recently shared with Cointelegraph that a heightened awareness of phishing attacks on social media can significantly boost a user’s crypto security.

In a more sinister turn, scammers sometimes compromise the accounts of influential industry figures to post malicious links, making it increasingly difficult for users to identify the scam. In September 2023, a fraudulent NFT giveaway was conducted through the compromised account of Ethereum co-founder Vitalik Buterin, resulting in over $691,000 drained from followers’ wallets.

Rogers underscores that such threats will persist, just as scams are not exclusive to the crypto world. He recalls the infamous “Nigerian president” email scams that have been around for years. “The cost of the attack always matches the potential reward,” Rogers notes. In 2024, crypto-related hacks surged by 15% from the previous year, totaling over $3 billion in stolen assets.

Meanwhile, a new threat known as ‘pig butchering’ scams has surfaced as a major concern for crypto investors. This complex phishing ploy has tricked investors into voluntarily transferring their assets to scam crypto addresses, resulting in a staggering loss of $5.5 billion across 200,000 identified cases on the Ethereum network in 2024 alone.

The post The Eternal Struggle for Crypto Security: Insights from a Wallet Executive appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

The team at BYDFi has disclosed that they have recently unearthed several phishing platforms and deceitful activities aimed at their users. As a globally acknowledged cryptocurrency exchange, BYDFi finds itself as a prime target for cybercriminals seeking to mimic the platform.

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Following last week’s record outflows of $2.9 billion, crypto ETPs persisted on the downward trajectory, culminating in a four-week total outflow of $4.75 billion, as reported by CoinShares on March 10. Despite the decrease in outflow velocity, James Butterfill, CoinShares’ head of research, reported a sustained bearish sentiment among investors and indications of market capitulation.

Bitcoin ETPs were chiefly responsible for the outflows, contributing $756 million, an alarming 85% of last week’s total. ETPs short on Bitcoin also had outflows amounting to $19.8 million, the highest since December 2024. The past four weeks’ cumulative outflows have reached $4.75 billion, consequently lowering the year-to-date inflows to $2.6 billion.

Total assets under management (AUM) have fallen by $39 billion to $142 billion, a record low since mid-November 2024. This decrease is attributed to both negative price actions and continuous outflows, as observed by Butterfill. Altcoins such as Ether, Tron, and Aave also experienced notable ETP outflows last week, amounting to $89 million, $32 million, and $2.4 million respectively.

In other news, Utah’s Bitcoin bill has passed the state Senate without the crucial provision for establishing the state’s own Bitcoin reserve. The modified HB230 “Blockchain and Digital Innovation Amendments” bill now only offers Utah citizens basic custody protections, the right to mine Bitcoin, run a node, and participate in staking, among others. The bill is now awaiting Governor Spencer Cox’s signature.

Lastly, Changpeng “CZ” Zhao has publicly requested Elon Musk to ban automated bots on X. These bots, often operated by individuals or teams running bot farms, amplify messages by liking or retweeting posts and even commenting on posts in a coordinated manner. They frequently impersonate crypto influencers or digital asset industry executives to promote fake tokens, fraudulent airdrop scams, and phishing links designed to mislead and steal funds from unsuspecting users.

The post Today’s Crypto Roundup: ETPs’ Continuous Outflows, Utah’s Bitcoin Bill, and CZ’s Plea to Musk appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.