Rumors have spread about the US Treasury Department’s alleged foray into the XRP Ledger (XRPL), causing a stir across the digital asset community. On January 21, several community accounts on
XRP Scam Alert
However, a deeper look under the hood revealed a series of red flags indicating that the wallet in question is neither genuine nor affiliated with the US Treasury. Community member Echo X (@echodatruth) has moved to X expose Rumors through a detailed video.
He explained in the video that there are many red flags related to the wallet. “If you do an XRP scan and enter the wallet address, you’ll notice that they have not only all these different tokens from Bank of America and BlackRock and JP Morgan, which again is a really red flag, but you can see that they have 16,000 XRP deposited into this wallet before. People just sent it to the closet or whatever they thought it was [Treasury]”.
According to Echo He, other developers from BuildX and the ERS team identified an unusual pattern of newly issued “Bank of America,” “BlackRock,” and “JPMorgan” tokens, all of which were minted with the same address — strong indicators that the tokens are illicit.
Public data from Bithomp shows that the suspicious wallet was activated on January 21 at 3:17 UTC, after which it immediately set its domain to the official US Treasury Department address, home.treasury.gov — a move that observers believe was intended to appear fake. legitimate.
Notably, the wallet received 1 trillion units each of Bank of America, BlackRock, and JPMorgan tokens, placed multiple sell orders for tens of millions of these tokens in exchange for XRP and used a questionable range. References, including ‘BRICS range’ which appears to be invalid.
Echo X highlighted that users who dug deeper into the source of these tokens would discover their suspicious origins. “Now, if you actually click on it and see what the Genesis wallets are… it leads you to the BRICS range wallet,” he noted. …This BRICS field is not even a valid field. Why would BRICS create a portfolio?”
Compounding doubts, data shows that wallet trust lines have been created around newly issued tokens that carry no official backing. In one notable transaction, the address placed an order to trade 299 million JPMorgan tokens for 33.23 million XRP, at an exchange rate of 0.11 XRP per token, raising further eyebrows about its authenticity.
The rumor gained momentum when it appeared on XRPScan that the addresses in question contained some form of verification mark – an aspect that typically shows that the wallet has completed the Know Your Customer (KYC) process. However, Wietse Wind, founder of Xaman (formerly Xumm), explained that verification on XRPScan simply indicates whether account holders have submitted personal data, not that they represent any particular entity. winds male Via X:
“The domain field is a public field in an account on the blockchain, and anyone can enter anything there. Tokens can be issued by anyone. KYC can be done by anyone. …XRPScan displays the data in the ledger. This data lives in Ledger. […] They are all actually KYC’d. By different people, all from the Philippines. So here we go. “Know your customer” helps, but it’s still not foolproof.”
Wind’s notes stress that the KYC process is limited to verifying an individual’s identity. It does not confirm that person’s affiliation with an organization, such as the US Treasury or any major bank. Effectively, a user can name the wallet “Treasury,” mint tokens with the names of financial institutions, and assign a domain to a high-profile website without actually representing those entities.
In its video, Echo Do your research and know what you have.
At press time, XRP was trading at $3.17
Featured image created with DALL.E, a chart from TradingView.com