South Korean police say they have arrested three suspects in connection with an alleged XRP investment scam that took about 12.3 billion won, or roughly $9 million, from 71 investors. Investigators say the group collected around 3.4 million XRP through a fake investment platform before shutting the site and disappearing.

Authorities also said wallet analysis traced 27.3 billion won in transfers linked to related addresses, suggesting the scale of losses could extend beyond the amount initially reported by identified victims. The case remains under investigation, with one additional suspect being pursued overseas.

Platform allegedly ran for one week

According to the Seoul Metropolitan Police Agency, the suspects are accused of operating a fraudulent XRP investment website between Oct. 16 and Oct. 23. Police allege that during that period the group persuaded 71 investors to transfer cryptocurrency into wallets they controlled, then closed the platform and vanished.

The site, identified as Fxrpntwork.com, was allegedly marketed as an XRP-related investment opportunity. Investigators said victims were directed to move XRP from South Korean exchanges through overseas platforms before sending the assets to addresses controlled by the group.

Promises of fixed returns drew investors

Police said the platform was promoted through portal blogs, online articles, and YouTube videos. The alleged marketing materials promised protection of principal along with monthly returns of 1.5% to 1.8%, a pitch authorities say was used to attract deposits.

Seoul police used the case to warn investors against relying on unverified information circulated online. Authorities said people should confirm claims through official sources before sending funds to unfamiliar wallets or using unverified crypto platforms.

Branding copied from legitimate crypto projects

Investigators said the operators used the names Flare Network and FXRP to make the platform appear tied to established blockchain infrastructure. The case reflects a broader pattern in crypto fraud in which scammers borrow recognizable names and branding to create a false sense of legitimacy.

The source article noted that Flare's official FAssets system is intended to represent assets such as XRP on the Flare network through overcollateralized mechanisms, allowing those assets to be used in decentralized applications. Police allege the suspects exploited that familiarity rather than offering a legitimate service.

Assets frozen as investigators widen the case

South Korean investigators said they froze 17.3 billion won in virtual assets soon after detecting the alleged fraud, although about 10 billion won moved during the investigation. Later wallet analysis identified 27.3 billion won in transfers connected to related addresses, leading police to examine whether there are more victims and additional accomplices.

Authorities said two of the arrested suspects are 29 years old. Police also plan to refer the case involving a 34-year-old alleged accomplice to prosecutors, while continuing to investigate others suspected of helping build or promote the website.

Overseas suspect remains at large

Police said another 29-year-old suspect is believed to be abroad. An Interpol Red Notice has been obtained as investigators work to locate that person and continue the cross-border part of the inquiry.

For now, the next confirmed step is the continued investigation into linked wallets, possible additional participants, and whether the total investor losses exceed the 12.3 billion won already tied to the 71 identified victims.

Source: news.bitcoin.com