South Korean authorities have dismantled a cryptocurrency investment fraud that collected approximately 3.4 million XRP worth 12.3 billion won (around $8.55 million) from 71 victims. The Seou
South Korean authorities have dismantled a cryptocurrency investment fraud that collected approximately 3.4 million XRP worth 12.3 billion won (around $8.55 million) from 71 victims.
The Seoul Metropolitan Police Agency (SMPA) announced on July 30, 2026, that three suspects have been arrested and a fourth is being pursued through an Interpol Red Notice. The case is considered one of South Korea’s largest XRP-related fraud crackdowns to date in a market where the digital asset is very popular.
Between October 16 and 23, 2025, the suspects launched a fraudulent website, Fxrpntwork.com, deliberately impersonating the legitimate Flare Network and its FXRP ecosystem. Police noted that the timing coincided with the real FXRP token rollout, which the group exploited to appear credible.
The platform falsely offered guaranteed principal protection and fixed monthly returns of between 1.5% and 1.8%. To further establish legitimacy, the group distributed fake promotional content across Naver blogs, Tistory, Wikipedia pages, online news articles, and YouTube videos, with some featuring paid actors posing as genuine reviewers.
Investors were urged to transfer their XRP from domestic exchanges to specific wallets through an overseas exchange. Police stated this routing was deliberate, designed to circumvent South Korea’s strict monitoring systems for large domestic crypto transfers. After collecting approximately 3.4 million XRP, the operators shut down the website and dispersed.
The investigation was triggered after an overseas exchange flagged suspicious XRP movements to South Korean authorities. The SMPA’s Cyber Investigation Unit used blockchain analytics, IP tracking, domain registration records, and communication logs obtained through warrants.
Within three days, investigators froze approximately 17.3 billion won (around $12 million) in XRP and Tether across several overseas exchanges. However, roughly 10 billion won (approximately $7 million) had already been moved and remains unaccounted for.
In total, investigators traced 27.3 billion won (approximately $19 million) through wallets linked to the operation, a figure significantly larger than the confirmed 12.3 billion won in victim losses, suggesting that additional unidentified victims likely exist.
The ringleader was arrested at a domestic hideout after returning from abroad. Two accomplices were apprehended while fleeing and have since been referred to prosecutors on aggravated fraud charges under South Korea’s Act on the Aggravated Punishment of Specific Economic Crimes.
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For the fourth suspect, believed to remain overseas, authorities obtained an arrest warrant and submitted a formal Interpol Red Notice request.
Crypto scams are an unfortunate part of the rapidly expanding industry. The SMPA stated it “will strictly respond to cyber frauds involving cryptocurrency under a zero-tolerance policy” and issued a public advisory urging investors to treat unverified platforms promising guaranteed returns with caution.
South Korea is further strengthening its cryptocurrency enforcement framework through enhanced cooperation among the Financial Intelligence Unit (FIU), financial regulators and other relevant authorities, alongside tighter anti-money-laundering requirements and monitoring of virtual-asset transactions.
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