A fake Flare Network staking site robbed 71 investors of 3.4 million XRP worth roughly $8.5 million last year, Seoul police said.
Two men were detained on aggravated fraud charges and a third alleged scammer is on the loose, South Korean news outlet Chosun reported Thursday.
Authorities said investigations are ongoing as they believe the scam is much larger than they have been able to prove so far, adding that the scammers might have robbed up to $19 million worth of XRP, Chosun stated.
The Cyber Crime Investigation Unit at the Seoul Metropolitan Police said the scammers ran the fake investment site from Oct. 16 to Oct. 23 and tricked victims into believing that if they deposited “Rippke, you will receive a return of 1.5% to 1.8% every month,” Chosun said.
Police officials investigating the case said the alleged scammers created the fraudulent website using the name of a genuine blockchain project. They then disseminated false advertising through Naver blogs, online news articles, Wikipedia and YouTube, the news outlet said.
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