Rumors have been circulating about the US Treasury’s alleged foray into the XRP Ledger (XRPL), sparking rumors throughout the digital asset community. On January 21, several community accounts on
XRP Scam Alert
However, a deeper look under the hood has uncovered a number of red flags indicating that the wallet in question is neither authentic nor affiliated with the US Treasury. Community member Echo X (@echodatruth) , took unmask the rumor through a detailed breakdown of the video.
In the video, he explained that there are many red flags with the wallet. “If you go to who have 16,000 [Treasury].”
According to Echo He and other BuildX developers and the ERS team identified an unusual pattern of newly issued “Bank of America,” “BlackRock,” and “JPMorgan” tokens all minted by the same address—strong indicators that the tokens are not legitimate.
Public data from Bithomp shows that the suspicious wallet was activated on January 21 at 3:17 UTC, after which it quickly established its domain at the official US Treasury address, home.treasury.gov, a a move that observers believe was intended to appear legitimate.
In particular, the wallet received 1 billion units each of tokens called “Bank of America,” “BlackRock,” and “JPMorgan,” placed multiple sell orders for tens of millions of these tokens in exchange for XRP, and used a questionable domain. references, including an apparently invalid “BRICS domain.”
Echo X highlighted that users who delved deeper into the provenance of these tokens would discover their suspicious origins. He noted: “Now, if you actually click on it and see what the Genesis wallets are… it will take you to a BRICS domain wallet. …That BRICS domain is not even a valid domain. Why would the BRICS be creating a wallet?
To further compound doubts, the data shows that the wallet’s trust lines were built around newly issued tokens that are not officially backed. In one notable transaction, the address placed an order to exchange 299 million JPMorgan tokens for 33.23 million XRP, at an exchange rate of 0.11 XRP per token, raising further questions about its authenticity.
The rumor gained traction when it appeared on XRPScan that the addresses in question had some type of verification tag, an appearance that typically shows that a wallet has completed a Know Your Customer (KYC) process. However, Wietse Wind, founder of Xaman (formerly Xumm), clarified that verification in XRPScan simply indicates whether account holders have submitted personal data, not that they represent any particular entity. Wind noted via X:
“The domain field is a public field in an account on the blockchain, anyone can enter anything there. Anyone can issue issued tokens. Anyone can perform KYC. …XRPScan displays data that is in the ledger. This data lives in the ledger. […] In fact, they are all KYC certified. By different people, all from the Philippines. There we have it. KYC helps, but it is still no guarantee.”
Wind’s comments underscore 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 U.S. Treasury or any major bank. Effectively, a user can label a wallet “Treasury,” mint tokens named after financial institutions, and establish a domain for a high-profile website without actually representing those entities.
In its video, Echo ..because they are trying.” to save you. … Make sure you do your own research and know what you have.”
At press time, XRP was trading at $3.17.
Featured image created with DALL.E, chart from TradingView.com
