South Korean authorities have arrested three suspects linked to an alleged cryptocurrency scam involving 12.3 billion won ($8.55 million). Police also requested an Interpol Red Notice for another suspect who remains outside the country.
The Seoul Metropolitan Police Agency (SMPA) said the group allegedly operated a fake cryptocurrency investment platform that targeted 71 investors. The suspects reportedly used Ripple (XRP) as part of the scheme, collecting about 3.4 million XRP tokens before shutting down the platform.
The investigation focused on a fraudulent website called Fxrpntwork.com which police said was created to appear as a legitimate digital asset trading service.
Seoul police arrested three people over a fraudulent XRP staking platform that took about 3.4 million XRP from 71 victims, with roughly 27.3 billion won ($19 million) reaching the operators’ wallets.
The site impersonated the Flare Network and FXRP projects, timed to their… pic.twitter.com/l7iFsQiRQ4
— The Block (@TheBlockCo) July 30, 2026
Fake XRP Platform Attracted 71 Investors
According to the SMPA, the suspects promoted the fake platform through online channels, including portal blog posts, false news articles and YouTube content. The promotions reportedly presented the service as a reliable investment opportunity.
The group allegedly promised investors guaranteed principal protection and monthly returns between 1.5% and 1.8%. Police said these claims encouraged victims to purchase XRP through domestic exchanges before transferring the assets to wallets controlled by the suspects.
Meanwhile, investigators said the transfers involved approximately 3.4 million XRP coins. At the time of the alleged fraud, the assets were valued at about 12.3 billion won.
After receiving the cryptocurrency transfers, the suspects reportedly closed the website and stopped communicating with investors. Police said the group used an overseas exchange during the transfer process.
The SMPA began investigating the case in October 2025 after receiving information about increasing cryptocurrency fraud activity. Authorities then tracked transaction records linked to the digital wallets.
Police Freeze Crypto Wallets During Investigation
Moreover, investigators said they managed to trace the movement of the stolen assets and freeze the suspects’ cryptocurrency wallet within three days of receiving the initial report.
The alleged ringleader was arrested after returning to South Korea, according to police. Two additional suspects were later detained while attempting to avoid capture across the country.
One of the arrested individuals has been transferred to prosecutors for further legal proceedings. Police also obtained an arrest warrant for another suspect and requested an Interpol Red Notice.
Additionally, authorities continue examining the financial movements connected to the alleged scam. The investigation focuses on identifying the full structure of the network and tracking remaining assets.
A police official said, “We will strictly respond to cyber frauds involving cryptocurrency under a zero-tolerance policy,” while advising investors to verify investment platforms before transferring digital assets.
South Korea Increases Action Against Crypto Fraud
Notably, the case comes as South Korean authorities continue monitoring cryptocurrency-related crimes involving fake investment services and online fraud schemes.
Police have reported increased attention toward scams that use digital assets, online promotions, and false trading platforms to attract investors. These schemes often involve promises of fixed returns or guaranteed profits.
Furthermore, investigators have continued using blockchain transaction records to follow cryptocurrency movements after reported fraud cases. Digital asset transfers recorded on public blockchains can provide information used during criminal investigations.
The SMPA said investors should remain cautious when dealing with platforms that offer guaranteed returns or require transfers to unknown wallets.
The investigation into the XRP cryptocurrency scam remains ongoing, with authorities continuing efforts to locate the remaining suspect and review the transactions linked to the alleged operation.
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