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The Seoul Metropolitan Police Agency has arrested three suspects and requested an Interpol Red Notice for a fourth in connection with an $8.55 million crypto fraud case. Investigators said the group stole about 3.4 million $XRP from 71 victims by operating a fake $XRP staking website that promised monthly returns.
Seoul Police Arrest Three, Seek Red Notice for One in $8.5M Fake $XRP Staking Scam
On July 30, 2026, the Seoul Police Cyber Investigation Unit announced that it had arrested three suspects in connection with a fake $XRP staking scheme that defrauded 71 investors of approximately 12.3 billion won ($8.55 million) worth of Ripple $XRP. Authorities also requested an Interpol Red Notice for a fourth accomplice believed to be overseas.
The investigation commenced in late October 2025 following intelligence gathered by the police regarding rising cases of crypto scams. Investigators followed transaction trails, froze crypto assets associated with the suspects and arrested the alleged ringleader at a hideout when he came back from overseas. Two other accomplices have since been referred to prosecutors on aggravated fraud charges.
How the Group Lured 71 Victims With Fake Staking Returns
The suspects created the fake investment website Fxrpntwork.com (FXRP Network) between October 16 and 23, 2025. They impersonated the legitimate Flare Network blockchain project and its associated FXRP staking protocol.
The group lured victims through portal blog posts, online articles, Naver services, Wikipedia articles and YouTube channels, including channels disguised as “Upbit Developer” accounts and “$XRP”-related channels. They falsely promised guaranteed principal protection along with fixed monthly returns of 1.5% to 1.8% for staking $XRP.
The victims were instructed to move tokens from domestic exchanges to overseas exchange to wallets controlled by the suspects. Once the tokens arrived, the operators shut the website down and disappeared.
What’s Next for South Korea’s Crypto Fraud Crackdown?
In the announcement of the arrests, the Seoul Police said, “will strictly respond to cyber frauds involving cryptocurrency under a zero-tolerance policy.” The authorities also urged the public to carefully watch unverified high-yield investment offers.
The case mirrors a broader pattern of intensified enforcement. Investigators tracked 27.3 billion won ($18.8 million) via wallets connected to the group and promptly blocked 17.3 billion won on foreign exchanges. An additional 10 billion won was transferred during the probe and has not been accounted for, raising the possibility there may be other victims besides the 71 identified.
In addition, South Korea is broadening the scope of its crypto crackdown by strengthening cooperation between police, the FIU and financial regulators, as well as promoting the Digital Asset Basic Act. Authorities will enact more robust powers to freeze accounts, implement AI-powered monitoring, curtail stablecoins and exchanges, strengthen anti-money laundering measures, and expand cross-border cooperation for combating cryptocurrency-related crime.
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