A fraudulent staking website masquerading as part of the Flare Network has reportedly defrauded 71 investors out of 3.4 million XRP, equivalent to around $8.5 million, as per the latest updates from Seoul police.
Authorities are concerned that the total losses from this scam could escalate to nearly $20 million. Two suspects have been apprehended on charges of aggravated fraud, while a third individual involved remains at large.
Investigation Ongoing Amid Rising Crypto Scams
According to a report by South Korean news outlet Chosun, the scam operated between October 16 and October 23, 2025. Victims were lured by promises of monthly returns ranging from 1.5% to 1.8% for their deposits of a currency referred to as “Rippke.”
Investigators from the Cyber Crime Investigation Unit at the Seoul Metropolitan Police believe the operation was larger than initially estimated. They have secured an arrest warrant and requested an Interpol Red Notice for the third suspect, who is currently believed to be hiding abroad.
The scammers leveraged the reputable name of the Flare blockchain project, disseminating false information through various platforms including blogs on Naver, online news articles, Wikipedia, and YouTube.
Flare Network, which has strong ties to the XRP ecosystem, launched in early 2023 with a focus on developing practical applications. As of March 2026, the network reported over $160 million in total value locked and had more than 887,000 active addresses.
A police official emphasized, "We will strictly respond to cyber frauds involving cryptocurrency under a zero-tolerance policy," advising investors to be cautious about investment opportunities that lack verification.
Crypto analytics firm Chainalysis reported earlier this year that scams and frauds led to losses of approximately $17 billion in cryptocurrency globally during 2025, with criminals increasingly using impersonation and AI tactics to target victims.