Seoul Police Crack Down on Fake XRP Staking Platform Scam

Seoul police have arrested three suspects behind a fake XRP staking platform that defrauded 71 investors of approximately $19 million. The suspects, who are friends, launched the fraudulent investment site called 'FXRP Network' in October last year, claiming that staking XRP through a newly released 'FXRP' token would generate monthly returns of 1.5% to 1.8%. The scheme borrowed credibility from Flare Network and FXRP, an actual XRP-linked asset issued by that network.

The promised returns were higher than those offered by legitimate staking products. To promote the scheme, the group used multiple online platforms, including Naver Blog, Tistory, online articles, Wikipedia, and YouTube. A Wikipedia entry falsely claimed that FXRP staking could only be done through the overseas exchange Binance.

The victims 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. Once received, the stolen assets were sold to over-the-counter traders and converted into Korean won. Authorities have issued an Interpol Red Notice and arrest warrant for the alleged ringleader, who remains abroad.

The full scale of the fraud could reach 27.3 billion won, and police are investigating the possibility of additional victims. Using blockchain tracking techniques, investigators froze approximately 17.3 billion won in virtual assets across multiple overseas exchanges within three days of receiving intelligence on the scheme.