February 14 News, former Ripple Chief Technology Officer and current Honorary CTO David Schwartz reiterated that XRP has no issuing entity, so in cases of theft or scam, no one can freeze, revoke, or recover these tokens. This statement was made in response to a recent “LP Reward Voucher” NFT scam, which resulted in a major liquidity provider’s wallet being drained and sparked widespread discussion in the community about XRP Ledger’s recovery features.
The earliest report of this incident came from X platform user Apex589, who noted that a liquidity provider suffered losses after receiving suspicious NFTs. Subsequently, GTFXRP added that the affected address belongs to a venture capital firm and urged the community to report the situation directly to David Schwartz. Some users asked whether losses could be recovered through XRPL’s recovery mechanism, but Schwartz responded that only assets with an issuing entity can be recovered, and since XRP is a native asset without an issuer, it cannot be reclaimed.
He emphasized that XRP differs from other tokens on the ledger, which rely on specific issuers and are under their control. As early as 2023, Schwartz pointed out multiple times that no individual or company “issues” or “redeems” XRP, so there is no feasible way to freeze or reverse transactions.
Although XRPL introduced a recovery mechanism for token issuers in February 2024, and expanded it to automated market maker scenarios in January 2025, these rules do not apply to XRP. Previously, Ripple co-founder and chairman Chris Larsen lost about $150 million worth of XRP in a hacking incident, and it could not be recovered by any technical means.
The LP reward voucher scam exploited XRPL’s NFT brokerage model. Scammers sent users fake NFT offers disguised as rewards, but in reality, they pre-set high token payments. When victims accepted the offer, the ledger automatically executed the transaction, transferring assets to the scammer’s wallet.
This incident serves as a reminder that in decentralized networks, asset security heavily depends on individual judgment. Once a mistake is made, the consequences are often irreversible.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Cryptocurrency Market Rebounds Amid U.S. Government Shutdown: Bitcoin, Ethereum, XRP, and Solana Rise Simultaneously
February 14 News, the United States experienced a partial government shutdown due to the failure to pass the budget on time. However, against the backdrop of increasing political uncertainty, the cryptocurrency market defied the trend and rose. Mainstream assets such as Bitcoin, Ethereum, XRP, and Solana showed significant rebounds, driving the overall market capitalization to recover.
Market data shows that in the past 24 hours, the total market value of cryptocurrencies increased by nearly 5%, reaching approximately $2.38 trillion. The previous weeks of volatility and decline had kept many investors on the sidelines, but this round of rebound has injected new activity into the market. Although some analyses had predicted that the shutdown would increase selling pressure, the actual trend has contrasted with those expectations.
GateNewsBot25m ago
European Compliance Channel Opens: XRP Accelerates Coverage of the EU Market After Scandinavia
On February 14, it was announced that after achieving compliance in Finland, a leading Nordic crypto service provider has expanded the compliant access scope of XRP to a broader European market. The company, having obtained authorization under the EU's Markets in Crypto-Assets Regulation (MiCA), now qualifies to offer regulated services across multiple countries. This development significantly enhances XRP's availability and compliance credibility within the EU region.
According to disclosures, the platform had already included XRP and various digital assets in its supported assets as early as December 2025. Recently, with the enforcement of its compliance license, related features have begun to open up to more jurisdictions. Previously, it made its first cross-border entry into Finland, allowing local users to buy, sell, transfer, and custody assets within a regulated environment, as well as providing basic services such as order book matching and asset swaps. This step is seen as a key milestone from the Nordic region toward the European Union.
GateNewsBot41m ago
Top Nordic Exchange Accelerates XRP Adoption Across Europe
Safello has expanded XRP access across Europe after launching services in Finland, enhancing its role as a regulated crypto exchange under the EU's MiCA framework. This move aims to simplify crypto access and drive broader adoption of XRP.
TheCryptoBasic44m ago
Could Brad Garlinghouse's participation in the CFTC conference change the direction of XRP?
In recent days, the price of XRP has been struggling to recover, raising concerns about the possibility of a repeat of the prolonged bear market scenario from 2021 to 2022. However, a new development involving Ripple CEO Brad Garlinghouse could be a game-changer.
TapChiBitcoin45m ago
XRP News Today: $1.40 Holds as Investors Buy the Dip Despite U.S. Government Shutdown Fears
XRP is trading near $1.40 on February 14, holding above key support despite a partial U.S. government shutdown that began at midnight. The cryptocurrency has gained 4.3% in the past 24 hours, benefiting from a broader market recovery that added 3.77% to total crypto capitalization.
Institutional inflows remain robust, with XRP products on the NYSE and NASDAQ recording a combined \$2.97 million in daily inflows on February 13. However, on-chain data from CryptoQuant shows XRP's 30-day vo
CryptopulseElite56m ago
