On July 30, Seoul authorities arrested three individuals tied to a fraudulent XRP investment scheme that targeted 71 investors, stealing around $9 million.
The group ran a fake platform called Fxrpntwork.com, which promised monthly returns between 1.5% and 1.8%. They lured victims by promoting their scheme through blogs, online articles, and YouTube videos.
Between October 16 and 23, 2025, scammers collected approximately 3.4 million XRP, then abruptly shut down the site and vanished. Police tracked 27.3 billion won through related wallets, suggesting losses could climb even higher.
Victims were urged to transfer XRP from South Korean exchanges via overseas platforms into wallets controlled by the suspects. Authorities warned investors to verify sources before moving crypto to unknown wallets.
Two suspects, both 29 years old, were taken into custody, while prosecutors prepare charges against a 34-year-old alleged accomplice. Another 29-year-old remains at large abroad, with an Interpol Red Notice issued for his arrest. Police suspect more people were involved in building and promoting the scam site.
The fraudsters copied branding elements from Flare Network and FXRP to appear credible. Flare’s official FAssets system allows XRP tokens to operate on its network through overcollateralized mechanisms, but this scam exploited their reputation.
Ripple itself has previously warned about imitation schemes that misuse trusted blockchain names and logos to deceive investors.
South Korean authorities’ crackdown highlights ongoing risks in the crypto space where impersonation scams prey on uninformed users. Caution remains vital.
This information is for educational purposes and does not constitute financial advice.
