According to the Korean newspaper "Chosun," on July 30, the Seoul Metropolitan Police Agency announced that investigators have detained three people accused of operating a fraudulent investment platform $XRP. Authorities claim that between October 16 and 23, the group collected approximately 3.4 million $XRP from 71 investors before shutting down the website and disappearing.
The suspects allegedly promoted the website Fxrpntwork.com through blog posts on portals, online articles, and YouTube videos, promising guaranteed principal safety and a monthly return ranging from 1.5% to 1.8%. Investors were instructed to transfer $XRP from South Korean exchanges via overseas platforms and then move the assets to wallets controlled by the group.
Seoul police warned potential cryptocurrency investors to thoroughly check official sources before transferring assets to unfamiliar wallets or unverified platforms:
"Do not be misled by unverified information on YouTube or other platforms. Check official sources before investing."
Investigators arrested two 29-year-old suspects and plan to transfer the case to the prosecutor's office regarding a 34-year-old alleged accomplice, while also pursuing another 29-year-old suspect abroad. Police obtained an Interpol "red notice" for the suspect located overseas and continue to investigate other individuals accused of creating and promoting the fraudulent website.
Fraudsters Copied Flare and FXRP Branding
The alleged operators used the names Flare Network and FXRP to make their platform appear linked to legitimate blockchain infrastructure. The official FAssets system from Flare is designed to represent assets such as $XRP on the Flare network using over-collateralization mechanisms, enabling these tokens to participate in decentralized applications.
Ripple has warned that cryptocurrency impersonation schemes often copy names, logos, videos, websites, and the identities of executives from trustworthy organizations to create a false impression of reliability. Interpol has also identified financial fraud as an increasingly organized cross-border threat, where criminal networks use digital platforms and fast transfers to move proceeds across jurisdictions before authorities can intervene.
Guaranteed Returns Remain a Common Red Flag in Crypto Fraud
Impersonation fraud schemes related to $XRP increasingly rely on fake promotional events, fabricated endorsements, and promises that victims will receive more tokens after sending funds.
Warnings about the proliferation of $XRP-related impersonation fraud highlight that legitimate companies do not request cryptocurrency transfers through unsolicited promotions, especially when scammers combine familiar branding with urgent instructions or promises of guaranteed profit. The fraud case involving fake 'risk-free' crypto earnings once again illustrates how claims of guaranteed returns can be used to lure victims.
FBI data on multi-billion dollar cryptocurrency fraud losses shows that cryptocurrency investment scam fraud continues to incur significant losses overseas, often aided by fake dashboards and fabricated account balances. An international cryptocurrency fraud crackdown operation that arrested 276 people also targeted networks accused of moving victim assets through multi-layered wallets, exchanges, and overseas financial channels.
South Korean investigators froze virtual assets worth 17.3 billion won shortly after identifying the alleged scheme, although approximately 10 billion won had been moved during the investigation. Wallet analysis subsequently revealed 27.3 billion won in transfers linked to those addresses, prompting authorities to check whether additional victims and accomplices remain unidentified.
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