The Seoul police have apprehended three individuals linked to a fraudulent scheme that defrauded 71 investors of 3.4 million XRP tokens, valued at approximately 12.3 billion won or $8.5 million. This information was reported by local news outlets.
The perpetrators posed as developers of the Flare Network ecosystem, promoting a counterfeit XRP staking service purportedly from Ripple, with promised returns of 1.5% to 1.8% monthly and a guaranteed refund.
How the Scheme Operated
In October 2025, the fraudsters launched a website named Fxrpntwork.com, which closely mimicked the design of the official Flare Network and FXRP token sites.
To enhance the illusion of legitimacy, they disseminated false information across blogs, Wikipedia, news sites, and YouTube, where a hired actor promoted the project.
Investors were convinced to transfer XRP from local exchanges to overseas platforms, directing the funds to wallets controlled by the scammers. Just eight days post-launch (on October 23), the website ceased operations, and the organizers vanished.
Ongoing Investigation
The investigation was initiated following a tip from an international cryptocurrency exchange regarding a surge in similar fraudulent activities. The police conducted over 50 searches, arresting two suspected organizers and an accomplice, while efforts to locate a fourth suspect, currently abroad, have resulted in an Interpol "red notice" publication.
Investigators traced asset movements amounting to 27.3 billion won ($18.8 million) and managed to freeze cryptocurrency worth 17.3 billion won. However, about 10 billion won had already been withdrawn by that time, suggesting the actual scale of the fraud may significantly exceed the confirmed $8.5 million.
In January, South Korean authorities also reported the disappearance of 22 BTC (approximately $1.4 million) from the cold wallet of the Gangnam police station in Seoul, which had been confiscated by law enforcement in 2021.