Three Arrested in South Korea Over $9M XRP Scam
South Korean police arrested three suspects accused of stealing 12.3 billion won ($9M) from 71 XRP investors; investigators traced 27.3 billion won through linked wallets.
Seoul Metropolitan Police arrested three suspects in a scheme that used a fake XRP investment website, fxrpntwork.com, to collect about 12.3 billion won (roughly $9 million) from 71 investors between Oct. 16 and Oct. 23. Investigators say the group gathered roughly 3.4 million XRP before closing the site and disappearing.
Authorities say promoters urged investors to move XRP from South Korean exchanges to overseas trading platforms and then transfer the tokens into wallets controlled by the suspects. Police froze about 17.3 billion won in virtual assets early in the probe, but investigators reported that roughly 10 billion won moved during the investigation. Subsequent wallet analysis linked 27.3 billion won in transfers to addresses connected with the scheme.
Two suspects aged 29 and one aged 34 were arrested. Officials are seeking another 29-year-old suspect believed to be abroad and have obtained an Interpol Red Notice. Investigators are examining whether other individuals helped build or promote the website and plan to refer the case to prosecutors after completing investigative steps.
The platform used names and imagery associated with legitimate projects, including Flare Network and FXRP, and promised guaranteed principal protection and monthly returns of 1.5% to 1.8%. Promoters used portal blogs, online articles and YouTube videos, copying logos and fabricating endorsements to attract investors.
Authorities warned: “Do not be misled by unverified information on YouTube or other platforms. Verify official sources before investing.”
Investigators said the suspects routed funds through multiple overseas platforms and layered wallets, moving assets across jurisdictions. Police are reviewing transaction records and promotional materials to identify additional victims and co-conspirators and are coordinating with overseas counterparts to recover assets and pursue the suspect believed to be abroad. The investigation may identify more linked transfers and additional victims.
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