Cyber Capital Founder: Selling XRP to Retail As “Decentralized” Is Straight-up Fraud

Justin Bons, founder of Cyber Capital, has strongly criticized XRP, questioning its decentralization and the way its network handles validator software. Bons claimed in an X post that XRP has operated closed-source code for the past two weeks and alleged that the code would become mandatory, with validators that refuse to comply potentially removed from the network. He connected the issue to what he described as a permissioned node list, noting that validators must follow the requirements imposed by those controlling the lists.

Bons also rejected the idea that the closed-source code could be justified solely as a critical security update. He compared the approach with Bitcoin, Ethereum and Solana, saying those networks have historically directed validators toward new binary and open-source code without revealing the details of a security vulnerability. According to Bons, developers can protect users by withholding vulnerability details while still allowing validators to inspect the software they are asked to run.

He said this approach provides a safer balance because closed-source binaries create additional risks. Bons warned that malicious code could potentially steal funds or take down an entire network, which he said demonstrates why open-source software remains important for decentralized blockchains. Selling XRP to retail as "decentralized" is straight-up fraud!

XRP has been running closed-source code for the last two weeks Tomorrow, this code becomes mandatory & anyone who disagrees will get kicked off the chain! A permissioned node list means validators must obey: … — Justin Bons (@Justin_Bons) October 8, 2026 Bons Challenges XRP’s Consensus Model Bons then turned his criticism toward XRP’s consensus structure. He claimed the latest situation exposes what he considers a deeper issue with XRP’s network design.

According to Bons, XRP operates under what he called a Proof of Authority, or PoA, model because authority comes from what he described as “kingmakers. ” He identified Ripple and the XRP Ledger Foundation as the entities responsible for publishing the two permissioned validator lists. Bons argued that this structure means the Ripple consensus model depends on permissioned validator lists rather than functioning as a fully decentralized system.

He compared XRP with Canton, saying the two networks share similarities in this respect. However, he credited Canton with being more transparent about the nature of its network. Bons Accuses Ripple of Misrepresenting XRP Bons said his main concern involves what he considers Ripple’s claims about XRP’s decentralization.

He accused Ripple of being dishonest and described the issue as entering the realm of investment fraud. He further claimed that crypto researchers outside the XRP ecosystem generally do not take the network’s decentralization claims seriously. Bons said XRP sits at the highly centralized end of blockchain designs and described the network’s decentralization claims as a “bad joke.

” Bons Raises Broader Concerns Over XRP In his conclusion, Bons described the closed-source software issue as the latest example of what he called deception surrounding XRP. He also revisited his criticism of XRP’s supply distribution, alleging that Ripple gave itself 100% of the supply and has steadily sold XRP to the public over many years. He warned that concentrated power could eventually be abused before directing users toward other blockchains he considers decentralized, scalable, and economically sound.

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