US Treasury and the XRP Ledger: Unveiling the Truth Behind Recent Rumors
The digital asset community has been abuzz with rumors about the US Treasury’s supposed entry into the XRP Ledger (XRPL). On January 21, several accounts on X claimed that a wallet associated with “home.treasury.gov” appeared on the ledger, establishing trustlines with major financial institutions like Bank of America, BlackRock, and JPMorgan.
Investigation Reveals XRP Fraud
However, upon closer inspection, multiple warning signs have emerged that cast doubt on the legitimacy of this wallet and its alleged connection to the US Treasury. A community member known as Echo X (@echodatruth) took to X to disprove these rumors, providing a comprehensive video analysis of the situation.
Advertisement Banner
Red Flags and Misleading Information
In his detailed breakdown, Echo X pointed out numerous red flags associated with the wallet. He explained, “If you check the wallet address on XRP Scan, you’ll notice it holds numerous tokens from Bank of America, BlackRock, and JP Morgan. This in itself is suspicious. Additionally, there are 16,000 XRP deposited by individuals mistakenly believing it is the Treasury’s wallet.”
Echo X emphasized that anyone can independently verify these inconsistencies using XRPL scanners such as XRPScan or Bithomp. Developers from BuildX and the ERS team also identified a pattern of newly issued “Bank of America,” “BlackRock,” and “JPMorgan” tokens, all created by the same address, indicating their illegitimacy.
Skeptical Observations and Domain Misuse
According to Bithomp’s public data, the dubious wallet was activated on January 21 at 3:17 UTC. It then set its domain to the official US Treasury address, home.treasury.gov, a tactic seemingly designed to lend credibility. The wallet received 1 trillion units of each of the so-called “Bank of America,” “BlackRock,” and “JPMorgan” tokens and executed sell orders for millions of these tokens in exchange for XRP. It also used questionable domain references, including an invalid “BRICS domain.”
Echo X stressed that further investigation into the token origins would reveal their dubious nature. He remarked, “Clicking on the Genesis wallets shows a connection to a BRICS domain wallet, which itself is not a valid domain. Why would BRICS create a wallet?”
The Reality Behind Token Authenticity
Data reveals that the wallet’s trustlines were established with newly minted tokens lacking official backing. In one transaction, the wallet placed an order to trade 299 million JPMorgan tokens for 33.23 million XRP at an exchange rate of 0.11 XRP per token, further questioning its authenticity.
Misleading Verification and KYC Limitations
The rumor gained momentum when XRPScan appeared to show verification for the addresses, a feature that typically indicates a wallet has completed a Know Your Customer (KYC) process. However, Wietse Wind, founder of Xaman (formerly Xumm), clarified that verification on XRPScan merely indicates that the account holders have submitted personal information, not that they represent any specific entity. Wind explained via X:
“The domain field is a public field on an account on the blockchain; anyone can enter anything there. Issued tokens can be issued by anyone. KYC can be done by anyone. … XRPScan shows data that lives on the ledger. This data lives on the ledger. […] They are all, in fact, KYC’d. By different people, all from the Philippines. So, there we have it. KYC helps, but it’s still no guarantee.”
Wind’s comments highlight that the KYC process only verifies an individual’s identity and does not confirm their association with an organization, such as the US Treasury or any major bank. It is entirely possible for a user to label a wallet “Treasury,” create tokens named after financial institutions, and set a domain to a prestigious website without representing those entities.
Community Vigilance and Responsible Investing
In his video, Echo X urged the community to remain cautious and avoid sending XRP to uncertain addresses based solely on domain labels or unfounded speculation. He stated, “Again, shout out to the BuildX and ERS community and team and developers … because they’re trying to save you. … Make sure you do your own research and know what you hold.”
As of the latest update, XRP was trading at $3.17, highlighting the importance of due diligence and informed decision-making in the digital asset space.
“`
