South Korean police have dismantled a sophisticated cryptocurrency fraud that stole 3.4 million XRP—worth approximately 12.3 billion won ($8.5 million)—from 71 victims over just eight days in October. The scam operated through a fake staking platform, Fxrpntwork.com, which impersonated the legitimate Flare Network and its FXRP token, promising guaranteed monthly returns of 1.5% to 1.8% with principal protection.
According to Seoul authorities, the fraudsters orchestrated an elaborate disinformation campaign, seeding false content across portal blogs, online news articles, Wikipedia, and even producing YouTube videos featuring a paid stand-in. This fabricated evidence convinced victims that the project was authentic. Investors were then instructed to move their XRP off domestic exchanges, route it through offshore platforms, and into wallets controlled by the criminals. The site abruptly shut down on October 23, and the operators vanished.
During the investigation, police traced a total of 27.3 billion won ($18.8 million) across wallets linked to the group—nearly double the confirmed losses—and froze 17.3 billion won on overseas exchanges after receiving a tip-off about a surge in staking fraud. Two 29-year-old men have been referred to prosecutors on aggravated fraud charges, while a 34-year-old stand-in faces fraud charges. A fourth suspect remains abroad under an Interpol Red Notice. Authorities executed 54 search and seizure warrants and arrested one individual who had returned from overseas to a hideout.
The case underscores South Korea’s escalating crackdown on crypto-related crime, following June’s indictment of 23 people over a $11.1 million USDT laundering scheme tied to a Cambodia-based phishing ring. Police reiterated a “zero tolerance” policy and urged investors to verify official sources before transferring funds.
