Seoul Metropolitan Police arrested three suspects linked to a crypto scam that stole 3.4 million XRP, equivalent to about $8.55 million. The fraudulent scheme impersonated the Flare Network, enticing 71 investors with promises of high-yield XRP staking returns between 1.5% and 1.8% per month. These guaranteed payouts raised red flags but failed to stop victims from transferring their XRP to wallets controlled by the scammers through an overseas exchange. Shortly after the funds arrived, the scammers shut down their fake platform and vanished.
The case revolves around the website Fxrpntwork.com, launched in October 2025, which closely mimicked Flare Network’s branding and web presence to lure victims. Authorities initiated investigations following a surge in crypto fraud reports. Blockchain analysis and wallet tracing enabled police to freeze stolen assets within three days of the initial complaint. The alleged ringleader was captured upon returning to South Korea, two accomplices were found hiding separately, and efforts are ongoing to locate a fourth suspect believed to have fled abroad.
The scam coincides with a notable rise in XRP trading activity in South Korea, where XRP volumes recently surged to nearly four times that of Bitcoin on major domestic exchanges. This case marks one of the largest crackdowns on crypto investment fraud in the country to date. The recovery of a significant portion of the stolen coins represents a win for law enforcement amid an evolving landscape of crypto scams.
material is for informational purposes only and not financial advice
