TLDR: The XRP staking scam allegedly took 3.4 million XRP from 71 investors, while police estimate total losses could ultimately approach $19 million. Investigators say the fraudulent FXRP Ne
Seoul police arrested three suspects in an XRP staking scam. It targeted 71 investors through a fraudulent online platform. Investigators say victims transferred 3.4 million XRP, valued near 12.3 billion won when the theft occurred during the scheme. That amount equals roughly $8.5 million, while potential losses may reach 27.3 billion won, or almost $19 million.
Two suspects were detained, while another was arrested without detention. Authorities are also pursuing an alleged ringleader believed to be overseas. Police warned investors against guaranteed returns and unverified services. These schemes often use legitimate blockchain project names to gain retail trust in Korea.
The suspects allegedly opened the FXRP Network website on October 16, 2025. It operated for only one week before disappearing on October 23.
The service claimed users could earn monthly returns between 1.5% and 1.8%. Promoters said deposits would support staking through FXRP, a genuine XRP-linked asset connected to Flare Network. Police said the website had no legitimate relationship with either project. That distinction was not disclosed to victims before they approved transfers through the promoted online service.
Investigators believe the group timed the XRP staking scam around growing public attention toward FXRP. That timing helped the XRP staking scam appear connected to a real product launch. The promised returns also exceeded rates commonly available through legitimate digital asset services.
Promotion spread across Naver Blog, Naver Knowledge iN, Tistory, Wikipedia, online articles, and YouTube. Some posts falsely stated that FXRP staking required transfers through Binance. Other videos used channel names resembling Upbit Developer and Ripple XRP.
Actors reportedly followed prepared scripts that directed victims through each transfer. This approach gave the instructions a professional appearance and reduced suspicion during the payment process.
Victims first moved XRP from domestic exchanges to overseas platforms. They then sent funds into wallets controlled by the suspects. Police believe this structure was designed to avoid South Korea’s Travel Rule checks.
Those rules require sender and recipient verification for virtual asset transfers above one million won. After receiving the XRP, the group allegedly sold it through over-the-counter traders. The proceeds were then converted into Korean won.
Overseas exchanges alerted Seoul police after several FXRP staking complaints appeared within a short period. Investigators then used blockchain records to follow transfers across wallets and trading platforms.
Within three days of receiving the intelligence, authorities froze about 17.3 billion won in virtual assets. The frozen amount exceeded losses confirmed from the 71 victims. Police are examining whether assets include proceeds from additional cases.
Three suspects have been arrested under laws covering aggravated economic crimes, fraud, and unauthorized deposit-taking activities. Two were detained. Investigators described the suspects as friends who divided responsibilities across the operation.
Authorities have also secured an arrest warrant for the suspected ringleader. An Interpol Red Notice was requested after investigators determined that he was staying abroad. Police continue to review the roles of people who built, advertised, or managed the fake staking platform.
The XRP staking scam also highlights the risks surrounding yield products that borrow names from established blockchain networks. FXRP is a real asset associated with Flare, but the XRP staking scam was not an official service.
Police urged users to verify platform domains, ownership details, and project announcements before transferring tokens. Guaranteed monthly returns should receive added scrutiny, especially when deposits require several exchange transfers.
XRP traded near $1.09 on July 30, rising about 1.7% during the day. Immediate support stood near $1.0744, while the 20-day exponential moving average near $1.0963 marked the first resistance level. The investigation has not linked Ripple, XRP, Flare Network, or legitimate FXRP services to the alleged fraud.
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