Seoul police have arrested three suspects in connection with an XRP staking scam that targeted 71 investors through a fraudulent online platform, with total potential losses estimated at nearly $19 million. The case underscores how South Korea — one of the world's largest retail crypto markets by trading volume — remains a frequent target for schemes that exploit investor familiarity with major digital assets.

According to investigators, victims transferred approximately 3.4 million XRP — valued at around 12.3 billion won (roughly $8.5 million) at the time of the theft. Police estimate that total losses across all affected individuals could reach 27.3 billion won, or approximately $19 million.

Two of the suspects were detained, while a third was arrested without detention. Authorities are also pursuing an alleged ringleader believed to be residing overseas and have requested an Interpol Red Notice for that individual.

Fraudulent Platform Misused Legitimate Asset Name

The suspects allegedly launched the FXRP Network website on October 16, 2025. The platform operated for only one week before disappearing on October 23.

The service advertised monthly returns of 1.5% to 1.8%, claiming that user deposits would support staking through FXRP — a genuine XRP-linked asset associated with Flare Network, a Layer-1 blockchain designed to bring smart contract functionality to assets from other networks. However, police confirmed that the fraudulent website had no legitimate relationship with either the Flare Network or the actual FXRP product. This distinction was not disclosed to victims before they authorized transfers through the platform.

Investigators believe the group deliberately timed the scam to coincide with growing public attention around FXRP, making the fraudulent service appear connected to a legitimate product launch. The promised returns also exceeded rates typically available through established digital asset platforms.

Coordinated Promotion Across Korean Platforms

Promotional content was distributed across Naver Blog, Naver Knowledge iN, Tistory, Wikipedia, online articles, and YouTube. Naver, South Korea's dominant search platform, and Tistory are widely used by Korean investors for financial information, making them effective channels for reaching retail users. Some posts falsely claimed that FXRP staking required transfers through Binance. Certain YouTube videos used channel names resembling "Upbit Developer" and "Ripple XRP" to lend credibility.

Actors reportedly followed prepared scripts that guided victims through each step of the transfer process, giving the instructions a professional appearance and reducing suspicion.

Victims were instructed to first move XRP from domestic exchanges to overseas platforms, then send the funds into wallets controlled by the suspects. Police believe this structure was specifically designed to circumvent South Korea's Travel Rule, which has required sender and recipient verification for virtual asset transfers exceeding one million won since its implementation in March 2023 under the country's Specific Financial Information Act.

After receiving the XRP, the group allegedly sold the tokens through over-the-counter traders and converted the proceeds into Korean won.

Police Freeze 17.3 Billion Won Within Three Days

Overseas exchanges alerted Seoul police after detecting multiple FXRP staking complaints within a short period. Investigators subsequently used blockchain records to trace transfers across wallets and trading platforms.

Within three days of receiving the intelligence, authorities froze approximately 17.3 billion won in virtual assets — an amount that exceeded the confirmed losses reported by the 71 identified victims. Police are now investigating whether the frozen assets include proceeds from additional, unreported cases.

The three suspects were arrested under laws covering aggravated economic crimes, fraud, and unauthorized deposit-taking activities. Investigators described the individuals as friends who divided responsibilities across the operation. Police continue to examine the roles of all parties involved in building, advertising, or managing the fake staking platform.

Police Urge Investor Vigilance

Police warned investors to be cautious of guaranteed-return offers and unverified services, noting that such schemes frequently exploit the names of legitimate blockchain projects to gain retail trust in South Korea. Authorities urged users to verify platform domains, ownership details, and official project announcements before transferring tokens, and to subject guaranteed monthly returns to heightened scrutiny — particularly when deposits require multiple exchange transfers.

FXRP is a legitimate asset associated with Flare Network, but the fraudulent staking service was not an official product. The investigation has not linked Ripple, XRP, Flare Network, or legitimate FXRP services to the alleged fraud.

XRP traded near $1.09 on July 30, up approximately 1.7% on the day. Immediate support stood near $1.0744, while the 20-day exponential moving average near $1.0963 served as the first resistance level.