TL;DR
- Blockchain investigator ZachXBT has criticized XRP holders for repeatedly asking him for help after falling victim to scams, arguing they act as exit liquidity for insiders.
- He pointed to a case where an investor lost $33,000 in a fake airdrop.
- While Ripple Labs has been funding external projects such as police initiatives in San Francisco, the company faces criticism for not supporting community-focused security tools. ZachXBT emphasized he prefers to prioritize major theft cases worth over $100,000.
ZachXBT, one of the most well-known independent blockchain investigators, has publicly voiced his frustration over constant messages from XRP holders who fall for scams. According to him, many of these users contribute little to the industry while repeatedly seeking outside help after losing funds to fraudulent schemes.
The comments came after screenshots circulated online showing an XRP investor who lost over $33,000 in a malicious airdrop attempt. The victim reportedly downloaded a fake wallet app that siphoned assets across several chains, leaving them with no practical recourse. ZachXBT made it clear he would not assist in such cases and even mocked Ripple holders for what he sees as repeated carelessness.
Ripple Funding Choices Questioned
Beyond individual scams, ZachXBT argued that Ripple has not invested in building forensic tools or public goods for its own users, unlike other blockchain ecosystems. Instead, Ripple co-founder Chris Larsen recently directed more than $9 million to fund drone surveillance for the San Francisco Police Department, including $2 million allocated to renting Ripple’s former offices for law enforcement use.
This decision, while legal and philanthropic in nature, has raised questions within crypto circles about whether Ripple’s resources are being misallocated. Critics argue that building community-driven protection systems would help prevent financial losses, while Ripple’s donations highlight a different set of priorities.
Larger XRP Developments Draw Attention
Despite frustrations from investigators, XRP continues to play a significant role in global crypto discussions. Earlier this year, Chris Larsen unlocked one billion XRP, moving $140 million worth to the Bithumb exchange. The move came shortly after President Trump announced that XRP would be included in a U.S. crypto reserve basket, fueling a 25% surge in the token’s price.
Still, Larsen has not been immune to losses. In 2023, he reportedly lost $150 million in XRP following the LastPass security breach, a case originally flagged by ZachXBT on his Telegram channel.
For now, ZachXBT maintains that his focus will remain on large-scale thefts exceeding $100,000 or cases that provide actionable intelligence, leaving smaller victims with few options beyond filing official reports and tracing transactions through exchanges.
