South Korean police detained three suspects and issued an Interpol Red Notice for a fourth linked to a massive XRP investment scam. Authorities say the group ran a counterfeit crypto investment site, luring 71 investors to send about 3.4 million XRP, roughly $8.6 million, under false promises.
The fake platform, Fxrpntwork.com, launched in October 2025. It claimed guaranteed monthly returns between 1.5% and 1.8% with principal protection a setup that authorities confirm never existed. The site gained traction by publishing blog posts, online news articles, and YouTube videos, posing as legitimate players within the XRP ecosystem.
Investigators revealed the scammers exploited Flare Network’s FXRP launch hype from September 2025 to appear credible. Flare’s FXRP token lets users lock up XRP to earn decentralized finance rewards without selling crypto. Leveraging this buzz, the fraudsters convinced victims to transfer XRP from South Korean exchanges to wallets controlled by the scheme through an offshore platform.
After collecting the funds, the operators abruptly shut down their website and vanished. Seoul Metropolitan Police began investigating quickly upon detecting the unusual spike in crypto scams in late 2025. They traced the stolen assets and froze wallets within three days, preventing more losses.
The arrests mark a significant crackdown on crypto-related fraud in South Korea. The investigation highlights vulnerabilities in the market that scammers can exploit by piggybacking on major token launches.
Despite the news, XRP price showed little immediate reaction, holding steady during early trading.
This information is for educational purposes and not financial advice.
