Last October, a fraudulent website pretending to be affiliated with Flare Network siphoned off 3.4 million XRP from 71 investors over just eight days. The stolen amount equated to roughly $8.5 million. The scammers lured victims with promises of monthly returns between 1.5% and 1.8%, assuring them that the principal was fully protected.
Victims were coaxed into withdrawing XRP from local exchanges and transferring funds to wallets controlled by the fraudsters, using offshore platforms as a cover. The fake site abruptly shut down on October 23, and its operators vanished.
Police Crackdown and Legal Actions
Seoul police identified cryptocurrency assets totaling about 27.3 billion won ($18.8 million) tied to the scam, managing to freeze 17.3 billion won. Two suspects face aggravated fraud charges, while a third is under prosecution for forgery connected to the scheme. Authorities executed 54 search and seizure warrants and apprehended one suspect who had fled abroad but recently returned.
The investigation uncovered the use of false information distributed through blog portals, online news articles, Wikipedia entries, and YouTube videos featuring paid actors to build trust among potential victims.
South Korean law enforcement has declared a strict zero-tolerance stance on crypto scams this year, urging investors to verify official sources meticulously before transferring any cryptocurrency.
This material is for informational purposes and does not constitute financial advice.
