Fake XRP Staking Platform Scams 71 Investors Out of $19 Million

Seoul police have arrested three suspects behind a fake XRP staking platform that defrauded 71 investors of roughly 3.4 million XRP, worth approximately $19 million.

The platform, called 'FXRP Network', falsely claimed to offer guaranteed monthly returns of 1.5% to 1.8% on virtual asset deposits through a newly released 'FXRP' token, which is linked to the Flare Network.

Investors were instructed to move their XRP from domestic exchanges to designated wallets via overseas exchanges, a method designed to circumvent South Korea's Travel Rule, which requires verification of sender and recipient information for virtual asset transfers exceeding 1 million won.

The suspects used multiple platforms, including Naver Blog, Naver Knowledge iN, Tistory, online articles, Wikipedia, and YouTube, to promote the scheme. They also created a fake Wikipedia entry claiming that FXRP staking could only be done through Binance.