South Korean authorities have arrested several suspects linked to a cryptocurrency investment scam that allegedly stole millions of dollars worth of XRP by posing as a legitimate FXRP investment platform.
The fraudulent scheme targeted XRP holders shortly after the launch of Flare Network’s FXRP token, luring investors with promises of high monthly returns before disappearing with their funds.
The investigation began after an overseas cryptocurrency exchange reported suspicious transactions. Within three days of receiving the alert, investigators tracked the movement of the assets and froze digital wallets containing a large portion of the stolen cryptocurrency.
How the Fraud Operated
According to investigators, the fake investment platform appeared soon after the launch of FXRP in October 2025.
The website promised investors monthly returns ranging from 1.5% to 1.8% while assuring them that their original deposits would remain safe.
To build credibility, the group created a sophisticated online presence that included fake reference websites, blog posts, news articles, and promotional videos designed to convince users the investment opportunity was genuine.
Victims were instructed to transfer their XRP through overseas cryptocurrency exchanges before sending the funds to designated wallet addresses. Authorities said this extra step helped make the transactions appear legitimate while making it more difficult to trace the organizers.
The platform remained online for just over one week before abruptly shutting down after collecting investor deposits.
During that brief period, 71 victims transferred approximately 3.4 million XRP, valued at around $8.6 million, into wallets controlled by the suspects.
Millions in Crypto Traced
Blockchain analysis later revealed that wallets linked to the operation processed digital assets worth approximately $19 million during the course of the scheme.
Authorities successfully froze about $12.1 million held on foreign cryptocurrency exchanges, though the remaining funds have yet to be recovered.
The confirmed losses averaged roughly $121,000 per victim, although individual losses varied widely. Police said at least one investor lost more than one billion won through the fraudulent platform.
The investigation ultimately led to multiple arrests in South Korea. Three men in their twenties and thirties were taken into custody, with two suspected ringleaders facing aggravated fraud charges.
Authorities also confirmed that another alleged organizer remains overseas and is currently the subject of an international alert.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
