XRP Scam Ring Arrested After Stealing $9M From 71 Investors

Fake $XRP Platform Vanished After Collecting Investor Funds

The Seoul Metropolitan Police Agency announced July 30 that investigators had apprehended three people accused of operating a fraudulent $XRP investment platform, according to Korean newspaper Chosun. Authorities allege the group collected approximately 3.4 million $XRP from 71 investors between Oct. 16 and Oct. 23 before closing the website and disappearing.

The suspects allegedly promoted Fxrpntwork.com through portal blogs, online articles, and Youtube videos while promising guaranteed principal and monthly returns between 1.5% and 1.8%. Investors were instructed to move $XRP from South Korean exchanges through overseas platforms before transferring the assets into wallets controlled by the group.

Seoul police warned prospective cryptocurrency investors to verify official sources carefully before transferring assets to unfamiliar wallets or unverified platforms:

“Do not be misled by unverified information on YouTube or other platforms. Verify official sources before investing.”

Investigators arrested two 29-year-old suspects and plan to refer the case against a 34-year-old alleged accomplice to prosecutors while pursuing another 29-year-old suspect abroad. Police obtained an Interpol Red Notice for the overseas suspect and continued examining additional participants accused of building and promoting the fraudulent website.

Fraudsters Copied Flare and FXRP Branding

The alleged operators used the names Flare Network and FXRP to make their platform appear connected to legitimate blockchain infrastructure. Flare’s official FAssets system is designed to represent assets such as $XRP on the Flare network through overcollateralized mechanisms, allowing those tokens to participate in decentralized applications.

Ripple has warned that cryptocurrency impersonation schemes frequently copy trusted names, logos, videos, websites, and executive identities to create false credibility. Interpol has also identified financial fraud as an increasingly organized cross-border threat, with criminal networks using digital platforms and rapid transfers to move proceeds across jurisdictions before authorities can intervene.

Guaranteed Returns Remain a Common Crypto Fraud Signal

Impersonation scams involving $XRP have increasingly relied on counterfeit promotions, fabricated endorsements, and promises that victims will receive more tokens after sending funds.

Warnings about expanding $XRP impersonation schemes have emphasized that legitimate companies do not request cryptocurrency transfers through unsolicited promotions, particularly when scammers combine familiar branding with urgent instructions or guaranteed returns. A fraud case involving fake “no-risk” cryptocurrency returns further illustrates how guaranteed-profit claims can be used to attract victims.

FBI data on billions of dollars in cryptocurrency scam losses shows that cryptocurrency investment fraud continues producing substantial losses across borders, often through fake dashboards and fabricated account balances. An international cryptocurrency scam crackdown resulting in 276 arrests also targeted networks accused of moving victims’ assets through layered wallets, exchanges, and overseas financial channels.

South Korean investigators froze 17.3 billion won in virtual assets shortly after detecting the alleged scheme, although approximately 10 billion won moved during the investigation. Wallet analysis later identified 27.3 billion won in transfers connected to the addresses, prompting authorities to examine whether additional victims and accomplices remain unidentified.