FBI Investigated Extortion Attempt Over Allegedly Negative Ripple Videos

Ripple Labs, the digital asset payment service provider tied to XRP, one amongst the five largest cryptocurrencies, became once blackmailed at the live of crypto mania three years ago, CoinDesk has realized.

Paperwork obtained by CoinDesk via a Freedom of Knowledge Act request point to an unidentified particular particular person emailed Ripple on Oct. 19, 2017, demanding 5 million XRP – then worth $1.1 million – in change for withholding videos it claimed portrayed the company in a adversarial gentle.


The Federal Bureau of Investigation’s (FBI) San Francisco and Canberra, Australia, locations of work investigated the extortion strive from Oct. 23, 2017, to April 20, 2018, essentially based mostly on the documents, which scheme no longer list the divulge material in the videos or whether Ripple paid the 5 million XRP.

The case became once closed after there became once be troubled monitoring the extortionist down with honest an electronic mail take care of, Web service provider data and an IP take care of, a computer or a smartphone’s online fingerprint, the documents articulate.

Asked about the videos and payment request by CoinDesk, Ripple didn’t reply by press time and the FBI declined to comment.

The privately held company, co-essentially based in 2012 by Chris Larsen and Jed McCaleb, the competing Stellar digital foreign money’s founder, is eyeing an preliminary public providing and became once the topic of intense market speculation two years ago when the prices of XRP and bitcoin (BTC) shot up in tandem to historical highs.

The market frenzy establish targets on the backs of excessive-profile cryptocurrency firms in 2018, a file-breaking One year for change hacks and other crimes victimizing them.

Ripple is funded by Andreesen Horowitz, Google Ventures, Lightspeed Finishing up Companions, Pantera Capital, Accenture, CME Community and IDG Capital plus banks which beget layered apps on top of its payment protocol including Santander, SBI Holdings and Normal Chartered.

Correction (Oct. 23, 20: 30 UTC): Adjustments name of Ripple co-founder to Chris Larsen

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