South Korea Busts $9M XRP Scam After Fake Staking Site Traps 71 Investors in Just 7 Days

Key Takeaways:

• Three suspects have been detained by South Korean police over a XRP investment scam worth 12.3 billion won. 
• The group is reported to have defrauded at least 3.4 million XRP by pushing fake fixed-return staking offers.
• Authorities seized some of the stolen digital currency and still cast their nets for an overseas culprit.

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A crypto fraud ring that is alleged to have contacted billions of won of XRP by masquerading as an investment platform has been broken up in South Korea. The investigators suspect the operation targeted dozens of investors by exploiting the trust of the well-known blockchain projects and guaranteed monthly returns.

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Three suspects including two men aged 29 have already been turned over to prosecutors, Seoul Metropolitan Police Agency said. A fourth suspect is currently overseas with an Interpol Red Notice and a second suspect is soon to be prosecuted.

The investigators say that they are aware that this group was running a fraudulent website from October 16 to 23, 2025. In that brief period, they allegedly recruited 71 investors for nearly 3.4 million XRP worth of 12.3 billion Korean won with monthly returns between 1.5% and 1.8%.

It is reported that the suspects even used the names of the real blockchain projects, such as Flare Network and FXRP, to make the website look legitimate.

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Online marketing was said to be the key element of the alleged fraud, rather than direct solicitation.

The group advertised the platform on blogs, online articles and videos on YouTube and other networks with the slogan, “principal guaranteed, or fixed monthly returns,” investigators said. Those guarantees prompted investors to shift their XRP holdings from wallets on domestic exchanges to specific wallets on the overseas exchanges.

Upon completion of the transfers for the victims, the website was closed and investors were unable to receive their money back.

It is illustrative of a typical crypto scam. Fraudsters tend to copy legitimate blockchain projects and promise unrealistic and risk-free returns that give people a sense of security. In the dynamic realm of cryptocurrencies, reputable investments do not come with predictable returns.

Last October, police were informed of an increase in cryptocurrency-related fraud and started investigating. During the investigation, 54 search and seizure warrants were issued, and the suspected ringleader was caught after he returned back to South Korea from abroad.

Investigators also arrested additional suspects who had reportedly been hiding in different parts of the country.

Soon after identifying the operation, police froze approximately 17.3 billion won in virtual assets spread across overseas exchanges. But investigators estimate that at least 10 billion won already had been transferred before emergency measures took effect.

Blockchain tracing has revealed that wallets connected to the case handled roughly 27.3 billion won in cryptocurrency transactions, suggesting the total financial damage may significantly exceed the currently confirmed 12.3 billion won.

Police are still investigating the foreign man and anyone who may have helped to create or advertise the investment scheme. Police also encouraged the crypto investors to check details on the official project websites rather than social media, blogs or YouTube broadcasts with promises of guaranteed profits.

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