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Ripple Advocate Reveals Scammer Scheme of Creating Fake XRP ETF Rumor, Here’s His Point

Attorney Jeremy Hogan, who closely follows the Ripple legal battle against the SEC regulatory authority and supports XRP as an asset class, has taken to X social media platform to refer to the recently announced news that BlackRock intends to file for an XRP-based exchange-traded fund.

BlackRock dismissed these rumors as a fraud, causing the Ripple-affiliated XRP coin to crash 12% after an impressive 15.76% price surge as XRP hit a peak at $0.75.

Hogan has broken down how easily any scammer could create such a hoax at a very low cost and make several millions of U.S. dollars in profit. Hogan’s point here is to warn the XRP army to do the fact checking before they hear such news and treat it with skepticism.

“It’s actually very easy and just costs $500”

Hogan tweeted that it is actually very easy to fake the formation of an “XRP ETF” Trust. He stressed that “it’s fraud but it’s actually very easy and just costs $500.”

The lawyer shared samples of two documents that need to be filed with the authorities, and then “you get a ‘placeholder’ on the state website.”

He referred to the recent case when BlackRock made it clear it plans to file for an ETH spot ETF, which caused the Ethereum price to instantly surge and reclaim a high of $2,100 on Nov. 10.

(Conjecture): criminal saw what happened with the Eth trust filing, files the XRP trust “filing,” buys $100k xrp on leverage, sells at 74 cents, and pockets 2-3 million dollars.Or, Blackrock has clients who want exposure to XRP and have begun the process.Tomorrow will tell.— Jeremy Hogan (@attorneyjeremy1) November 14, 2023

Hogan believes that the scammer who spread the word about BlackRock filing for an XRP ETF could buy 100,000 on leverage and then sell this crypto chunk once XRP soared to $0.74 and, as a result, could make $2 million or $3 million.

He assumed that there was a chance that this filing was made by BlackRock; after all, however, the fund manager debunked that as a fake rumor and fraud.

24 million XRP sent to Bitstamp as price moves rapidly

According to prominent crypto tracking service Whale Alert, slightly more than 14 hours ago, a massive transaction, carrying 24,000,000 XRP in total, was detected, while the XRP price first rose and then collapsed by 12%. This amount of digital currency is equal to a hefty sum in U.S. dollars – $15,616,660.

🚨 24,000,000 #XRP (15,616,660 USD) transferred from unknown wallet to #Bitstamp

— Whale Alert (@whale_alert) November 13, 2023

The sender address r4wf7enWPxyHtbizyV7ZHiZi5XgwHh4Rzn, according to data shared by Bithomp XRP explorer, is related to Ripple Labs crypto decacorn. Over the past several months, this wallet has been making regular transfers, sending up to 30 million XRP to crypto exchanges Bitstamp and Bitso.

These platforms are known to collaborate with Ripple on its product called Ripple Payments. It runs on RippleNet and utilizes XRP for international transactions. The name emerged earlier this year after the product was rebranded from being called On-Demand Liquidity (ODL) by Ripple.

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