Key Highlights
- South Korean police arrested three suspects over an alleged 12.3 billion won ($8.55 million) XRP investment scam.
- Authorities are seeking an Interpol Red Notice for a fourth suspect believed to be hiding overseas.
- The group allegedly convinced 71 investors to deposit 3.4 million XRP through a fake investment platform.
South Korean authorities have arrested three people and launched an international search for a fourth suspect after dismantling an alleged 12.3 billion won ($8.55 million) cryptocurrency investment scam centered on XRP.
According to a local report, the Seoul Metropolitan Police Agency (SMPA) said the suspects allegedly ran the fraudulent investment platform Fxrpntwork.com, persuading 71 investors to transfer around 3.4 million XRP between October and November 2025.
Police said the platform falsely advertised guaranteed principal protection and fixed monthly returns of 1.5% to 1.8%, using blog posts, online articles, and YouTube videos to attract victims.
How fake XRP investment platform targeted investors
Investigators said victims were instructed to transfer XRP from domestic exchanges to designated wallets through an overseas exchange before depositing the assets into the fake platform. Once the transfers were completed, the website was shut down, and the operators disappeared.
According to police, the suspects promoted the platform as a legitimate investment service while falsely promising stable monthly returns. Authorities launched an investigation in October 2025 after receiving intelligence about a surge in crypto-related fraud. Investigators were able to trace the movement of funds and freeze the group’s cryptocurrency wallet within three days, preventing additional losses.
Three arrested, one suspect wanted internationally
Police said the alleged ringleader was arrested after returning to South Korea from overseas. Two additional suspects were later captured while attempting to evade authorities across different parts of the country, with one already referred to prosecutors.
Meanwhile, investigators have obtained an arrest warrant for the remaining suspect and requested an Interpol Red Notice, seeking international assistance to locate and extradite the individual.
A police official said authorities would continue pursuing crypto-related fraud aggressively and urged investors to remain cautious of investment platforms promising guaranteed returns or unusually high yields.
South Korea continues tightening crypto crime enforcement
The latest arrests come as South Korean authorities continue stepping up enforcement against digital asset crimes.
Earlier this year, a South Korean court sentenced a local gangster to eight years in prison after he failed to return 500 million won worth of Bitcoin and instead gambled away the funds in a separate crypto fraud case.
Authorities have also faced scrutiny over the handling of seized digital assets. In another widely reported incident, prosecutors investigated the loss of approximately $48 million in confiscated Bitcoin, following previous cases involving missing seized crypto, including 1,476 BTC in 2021 and another case involving roughly $127 million worth of Bitcoin in 2024.
Those incidents prompted renewed discussion around crypto custody, law enforcement procedures, and asset security within government agencies.
Investment scams remain a major crypto threat
The latest XRP case highlights the continued prevalence of investment scams targeting retail cryptocurrency holders through social media promotions, fake investment websites, and unrealistic return promises.
As cryptocurrency adoption continues to grow in South Korea, regulators and law enforcement agencies have repeatedly warned investors to verify platforms carefully and avoid services promising guaranteed profits.
The SMPA said investigations into crypto-related financial crimes remain a priority as authorities work to identify additional suspects and recover stolen digital assets.
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