South Korean authorities uncovered a scam that siphoned 3.4 million XRP, roughly $8.5 million, from 71 investors last year. The counterfeit platform, exploiting the Flare Network brand, promised monthly staking returns between 1.5% and 1.8%, luring victims through fake blogs, YouTube videos, and news articles.
Seoul police are pursuing two men already detained on aggravated fraud charges, while a third suspect remains at large with an Interpol Red Notice pending. Officials suspect the total stolen amount could reach nearly $19 million in XRP, indicating the scale of deception might be far larger than initially estimated.
How the Scam Operated
The fraudsters launched the fake staking site in mid-October 2025, convincing investors to deposit XRP by mimicking legitimate Flare Network communications. Using various online channels including Wikipedia and popular Korean portals like Naver, they fabricated trustworthy content to amplify their scheme.
Flare Network, which integrates closely with the XRP ecosystem and rolled out in early 2023, has been building real-world applications with over $160 million in total value locked. This incident highlights how impersonation and crypto investment scams continue to exploit reputable blockchain projects to target unsuspecting users.
This article is for informational purposes and does not constitute financial advice.
