Scammers created a fake Flare Network staking site and used fabricated Wikipedia, blog, and YouTube content to steal $8.5M in XRP from users.
Security & Exploits ·
A fraudulent staking platform operating for eight days in October extracted 3.4 million XRP from 71 investors, generating losses valued at $8.5 million, according to Seoul police. The site, Fxrpntwork.com, mimicked the legitimate Flare Network and FXRP token while dangling guaranteed returns of 1.5% to 1.8% monthly. Two 29-year-old men have been referred for aggravated fraud charges, with a 34-year-old paid to pose in promotional videos also facing fraud accusations.
To establish credibility, the group seeded false content across multiple channels—fabricated Wikipedia entries, planted blog posts, and produced YouTube videos—creating a veneer of independent verification. Participants were instructed to move holdings through offshore exchanges into wallets controlled by the operators before the site vanished on October 23. Police traced $18.8 million through wallets associated with the group and froze $11.9 million, though $6.9 million moved during the investigation and remains unaccounted for.
The disparity between confirmed victim losses ($8.5 million) and total traced funds ($18.8 million) suggests additional victims have not yet been identified. A fourth suspect, also 29, remains overseas under an Interpol Red Notice. No arrests have resulted in trial convictions, and authorities have withheld identities from public disclosure.