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

South Korean police have arrested three suspects accused of stealing 12.3 billion won (about $9 million) from 71 XRP investors. The Seoul Metropolitan Police Agency announced on July 30 that investigators apprehended the individuals for operating a fraudulent XRP investment platform, according to Korean newspaper Chosun.

The suspects allegedly promoted the fake platform, Fxrpntwork.com, through portal blogs, online articles, and YouTube videos. They promised 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.

The scam operated between October 16 and October 23, collecting approximately 3.4 million XRP from 71 investors before the website was closed and the perpetrators disappeared.

Investigators arrested two 29-year-old suspects and plan to refer a 34-year-old alleged accomplice to prosecutors. They are also pursuing another 29-year-old suspect abroad, for whom an Interpol Red Notice has been obtained. Police continue examining additional participants accused of building and promoting the fraudulent website.

The alleged operators used the names Flare Network and FXRP to make their platform appear connected to legitimate blockchain infrastructure. Ripple has warned that cryptocurrency impersonation schemes frequently copy trusted names, logos, videos, websites, and executive identities to create false credibility.

Seoul police warned prospective cryptocurrency investors to verify official sources carefully before transferring assets to unfamiliar wallets or unverified platforms, advising not to be misled by unverified information on YouTube or other platforms.

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.

Guaranteed returns remain a common warning sign in cryptocurrency fraud. Legitimate companies do not request cryptocurrency transfers through unsolicited promotions, especially when scammers combine familiar branding with urgent instructions or guaranteed returns.

Source: https://news.bitcoin.com/featured/xrp-scam-ring-arrested-after-stealing-9m-from-71-investors/