Research: $ 400 Million XRP Involved In Fraudulent Schemes
Experts at Elliptic analytic company have established the involvement of several hundred XRP accounts in Ponzi schemes and other illegal activities. Researchers have identified fraud-related transactions in the cryptocurrency network totaling $ 400 million, TheBlock reports.
According to the research, only about 0.2% of cryptocurrency operations of the Ripple startup are related to illegal activities. Elliptic specialists noted that XRP is most often used for fast enrichment schemes. According to a number of participants in the crypto community, the presented statistics can positively affect the behavior of the asset rate.
BTC, in turn, is popular as a means of conducting settlements on shadow marketplaces. Bitcoin coverage in illegal transactions is about 0.5% of the total transaction volume.
According to Elliptic co-founder Tom Robinson, there are many XRP hodlers that belong to retail investors. This is why they are an attractive target for attackers.
The specialist also drew attention to the difficulty of tracking illegal operations in the XRP network. According to him, the asset is different from other cryptocurrencies, including BTC. Monitoring the latter, according to Tom Robinson, seems simpler.
The Elliptic team noted that their development for XRP transaction tracking was the first in the market. The choice of cryptocurrency of the Ripple project as a new object of research was explained by experts as being in demand among crypto users.
Recently, the Ripple team reported on project growth rates. According to CEO Brad Garlinghouse, in October 2019, more transactions were conducted on the cryptocurrency network than in the entire 2018.
— Ripple (@Ripple) November 7, 2019
Note, the Ripple team is committed to ensuring the safe use of its asset. To this end, startup specialists signed an agreement with fintech company Coinfirm. Employees of the latter should examine the XRP and identify the actual level of security of the cryptocurrency.