A fraudulent staking scheme linked to the Flare Network has defrauded investors of $8.5 million in XRP, with fears of total losses nearing $20 million.
A fraudulent staking scheme falsely claiming affiliation with the Flare Network has swindled 71 investors out of 3.4 million XRP, valued at approximately $8.5 million, according to reports from Seoul police.
Authorities fear that total losses could rise to nearly $20 million. Two individuals have been arrested on charges of aggravated fraud, and a third suspect remains at large.
Ongoing Investigation Amid Surge in Crypto Scams
As detailed by South Korean news outlet Chosun, the scam operated from October 16 to October 23, 2025. Victims were attracted by promises of monthly returns between 1.5% and 1.8% on their investments in a currency dubbed "Rippke."
Investigators from the Seoul Metropolitan Police's Cyber Crime Investigation Unit suspect that the scale of the operation may be larger than initially thought. They have obtained an arrest warrant and are seeking an Interpol Red Notice for the third suspect, who is believed to be hiding overseas.
The scammers exploited the reputable name of the Flare blockchain, spreading misleading information through various channels such as blogs, online news, Wikipedia, and YouTube.
Launched in early 2023, Flare Network is closely associated with the XRP ecosystem and aims to develop practical applications. By March 2026, it reported over $160 million in total value locked and more than 887,000 active addresses.
A police spokesperson stated, "We will strictly respond to cyber frauds involving cryptocurrency under a zero-tolerance policy," urging investors to be cautious about unverified investment opportunities.
Earlier this year, crypto analytics firm Chainalysis highlighted that scams resulted in around $17 billion in cryptocurrency losses globally during 2025, with criminals increasingly utilizing impersonation and AI tactics.
