Seoul police say an XRP scam impersonating Flare Network and its token (FXRP) drained 3.4 million XRP, worth 12.3 billion won, from 71 investors last October. Three people have been arrested, and police are pursuing a fourth under an Interpol Red Notice, according to the Seoul Metropolitan Police Agency’s Cyber Investigation Unit. Investigators believe the XRP scam’s total haul could reach $19 million as wallet transfers are traced.
According to Seoul Economic Daily, which first reported the case, the group’s fake platform, Fxrpntwork.com, ran for eight days, from October 16 to October 23, 2025, before vanishing. Operators promised guaranteed principal protection and monthly returns of 1.5 to 1.8 percent, mimicking Flare’s real FAssets system with none of its on-chain verification.
To build credibility before launch, the group behind the XRP scam seeded Naver blogs, Tistory posts, Wikipedia entries and YouTube videos with fabricated endorsements. Suspects A and B, both 29, have been referred to prosecutors under detention.
A third accomplice remains under investigation, and police have secured an arrest warrant and an Interpol Red Notice for a fourth suspect believed to be staying abroad.
Why This XRP Scam Fooled XRP Holders
The XRP scam exploited a real gap in the XRP ecosystem: the XRP Ledger has no native smart contracts, so real yield depends on wrapped assets like Flare’s FAssets, a detail most holders miss. That gap helped this XRP scam fool 71 people in barely a week.
The pattern matches cases our Latest Crypto News has tracked just recently and it’s worth reading alongside this story.
The Missing 10 Billion Won From This XRP Scam
Police have frozen 17.3 billion won of the roughly 27.3 billion won traced to wallets in this XRP scam, leaving close to 10 billion won unaccounted for, a gap that may point to unreported victims.
No trial date has been set for the two detained suspects, and the Interpol Red Notice against the fourth remains active. The Block reported a separate INTERPOL operation across 97 countries produced thousands of fraud arrests this year, part of a wider crackdown on crypto fraud.
What This Means for You
Treat any staking platform that guarantees your principal and a fixed return as a warning sign, not reassurance, since real products like Flare’s FAssets rely on on-chain verification, not promises. Before moving XRP to a new platform, confirm it exists through official project channels, not a blog post or video. This XRP scam shows fraudsters can build a convincing paper trail within days, so verification starts at the source.
This article is for informational purposes only and does not constitute financial advice. Do your own research before making any investment decisions.
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