Crypto Blog
The XLS-39 Clawback, part of the XRP Ledger Version 1.12.0, allows asset issuers to “claw back” assets for account recovery or in case of suspected fraudulent activity.
Ripple’s development team proposed this feature in early September. On their official X account, the team announced the XRP Ledger update, which introduced multiple features, mainly an Automated Market Maker and the Clawback. These are still pending validation from the community. Fraudulent activity: if an asset is equipped with the Clawback function, the issuer can take action by reclaiming the funds from the token holders if they suspect fraudulent activity coming from the other end.
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