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Fake staking site drains $8.5 million in XRP from dozens of investors promising easy yield
Seoul police report that a fraudulent website impersonating Flare Network stole 3.4 million XRP (approximately $8.5 million) from 71 investors in October 2025, with authorities estimating potential total losses as high as $19 million. Two men were detained on aggravated fraud charges; a third suspect remains at large overseas.
A fraudulent website impersonating Flare Network stole 3.4 million XRP worth approximately $8.5 million from 71 investors in 2025, according to Seoul police. The Cyber Crime Investigation Unit at Seoul Metropolitan Police said the scammers operated the fake site from October 16 to October 23, 2025, tricking victims into believing that deposits would generate monthly returns of 1.5% to 1.8%.
The scam exploited the legitimate Flare Network's credibility within the XRP ecosystem. Flare, which launched in early 2023, reported over $160 million in total value locked as of late March 2026 and more than 887,000 active addresses. Authorities suspect the actual scope of the fraud is far larger than confirmed, estimating total losses could reach $19 million, suggesting either more victims or larger individual losses remain undiscovered.
Two men were detained on aggravated fraud charges. A third alleged accomplice remains at an unknown location overseas. Seoul police have obtained an arrest warrant and requested an Interpol Red Notice for the remaining suspect.
The scammers disseminated the fake website through multiple channels: Naver blogs, online news articles, Wikipedia, and YouTube, per the police report. The breadth of the distribution network suggests a deliberate effort to establish credibility across multiple platforms and build trust before the brief operational window. The site's swift removal or closure after October 23 indicates the perpetrators executed a coordinated hit-and-run operation rather than attempting a prolonged theft.
The Seoul police statement noted the scammers' method fits a pattern researchers have documented globally. Chainalysis reported that as much as $17 billion in crypto was lost to scams and frauds in 2025, and noted that criminals increasingly lean into impersonation tactics and artificial intelligence to industrialize their operations. Fake staking and yield-farming sites remain among the most effective vectors because they combine the appeal of passive income with the appearance of technical legitimacy.
A Seoul Metropolitan Police official stated: "We will strictly respond to cyber frauds involving cryptocurrency under a zero-tolerance policy," and urged investors to exercise caution against unverified investment claims.
3.4 million XRP worth $8.5 million stolen from 71 investors via fake Flare Network staking site operated October 16-23, 2025, per Seoul Metropolitan Police.
Authorities continue investigating whether the $8.5 million in confirmed losses represents the full scope of the fraud. Watch for updates on the Interpol Red Notice and whether the third suspect's apprehension reveals additional victims or connected operations, which would validate or refute the $19 million upper estimate.
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