South Korean authorities have uncovered a cryptocurrency fraud scheme that exploited interest in the newly launched FXRP token from Flare Network. The operation targeted XRP holders through a fake investment platform that disappeared after collecting millions of dollars in digital assets. Within three days of receiving an alert from an overseas exchange, investigators traced the activity and froze wallets holding most of the stolen funds. Seventy-one victims transferred about 3.4 million XRP worth roughly $8.6 million into suspect-controlled wallets. Three men in their late twenties and thirties were arrested in South Korea, and an international alert has been issued for an additional suspect overseas.
South Korean authorities discovered a cryptocurrency fraud case that exploited interest in a newly launched blockchain token. The scam targeted XRP holders using a fake investment platform that vanished after collecting millions of dollars in digital assets.
The investigation began after an overseas cryptocurrency exchange flagged suspicious transactions. Within three days, investigators traced the activity and froze digital wallets holding most of the stolen assets.
The fraudulent website appeared shortly after the Flare Network introduced its FXRP token in October 2025. It promised monthly returns of 1.5% to 1.8% while claiming users’ original deposits would remain protected.
The group created convincing online material to support the fake project. False reference pages, blog posts, online articles, and promotional videos were published to build trust among potential victims.
Victims were instructed to move their XRP through overseas exchanges before sending funds to designated wallet addresses. This process made the transfers appear credible while helping organizers distance themselves from the stolen assets.
The website operated for slightly more than one week before shutting down without warning. Seventy-one victims transferred about 3.4 million XRP worth roughly $8.6 million into wallets controlled by the suspects.
Blockchain tracing showed that the suspects’ wallets handled digital assets worth approximately $19 million during the operation. Officials froze about $12.1 million on foreign exchanges, while the remaining funds have not been recovered.
Confirmed losses averaged around $121,000 per victim, although amounts varied significantly. Police said at least one victim reported losing more than one billion won through the fraudulent platform.
The financial investigation led to several arrests in South Korea. Three men in their late twenties and thirties were taken into custody, while two suspected organizers face aggravated fraud charges and another suspect remains overseas under an international alert.
