South Korean police have arrested three individuals and secured an Interpol Red Notice for a fourth suspect over an alleged XRP investment scam.
According to a report by Yonhap News Agency, the Seoul Metropolitan Police Agency (SMPA) accused the group of operating a fake cryptocurrency investment platform that lured investors with promises of guaranteed returns before disappearing with their digital assets.
Investigators said the suspects launched the fraudulent website Fxrpntwork.com in October 2025 and persuaded 71 investors to transfer 3.4 million XRP, worth 12.3 billion won ($8.6 million) at the time.
To attract victims, the platform promoted itself through blog posts, online news articles, and YouTube videos. It claimed to offer full principal protection and fixed monthly returns of 1.5% to 1.8%, promises that authorities say were entirely false.
Fraudsters Exploited Interest in Flare’s FXRP Launch
Police said the operators boosted the scheme’s credibility by impersonating legitimate projects within the XRP ecosystem, particularly Flare Network, capitalizing on heightened interest surrounding its FXRP launch in September 2025.
For context, Flare enables users to lock native XRP while receiving an equivalent amount of FXRP on the Flare network. This mechanism allows XRP holders to participate in decentralized finance (DeFi) applications and earn yields without selling their original assets.
Authorities said the suspects instructed victims to transfer their XRP from South Korean cryptocurrency exchanges to designated wallets through an overseas exchange. Once the transfers were complete, the operators shut down the website and disappeared with the funds.
Investigation and Subsequent Arrests
The Seoul Metropolitan Police Agency launched its investigation in October 2025 after receiving intelligence about a rise in cryptocurrency-related fraud.
Investigators quickly traced the movement of the stolen digital assets and froze the suspects’ cryptocurrency wallet within three days of receiving the initial report, preventing additional investor losses.
Authorities later arrested the alleged ringleader after he returned to South Korea from overseas. They also apprehended two other suspects while they attempted to evade arrest in different parts of the country, with one already referred to prosecutors.
Meanwhile, police secured an Interpol Red Notice for a fourth suspect to locate and provisionally arrest the individual pending extradition proceedings.
XRPL Validator Warns Community About Emerging DeFi Scams
Following the arrests, prominent XRP Ledger dUNL validator Vet urged the XRP community to remain vigilant as decentralized finance activity expands on the XRPL.
While commending the South Korean authorities for their swift action, Vet cautioned that the growth of new financial applications on the XRP Ledger could also create opportunities for fraudsters. According to him, upcoming XRPL lending protocols may deliver legitimate innovation but could also inspire fake staking, lending, and yield-generation schemes designed to exploit unsuspecting investors.
Vet encouraged XRP holders to verify the authenticity of investment platforms before transferring funds, emphasizing that scammers often exploit excitement surrounding new ecosystem developments.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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