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 ·
Seoul police said a fraudulent staking operation impersonating Flare Network and FXRP extracted 3.4 million XRP from 71 investors during an eight-day window in October, valued at $8.5 million. The scheme involved posting false corroborating content across Wikipedia, blogs, and YouTube videos featuring a paid actor to establish credibility before the site shut down and operators vanished. Two men aged 29 faced aggravated fraud charges, a 34-year-old was charged for appearing in fabricated promotional videos, and a fourth suspect remains overseas under an Interpol notice. Police recovered $18.8 million in traced transactions linked to the group, though $10 million moved during the investigation and remains unaccounted for, suggesting victim count may exceed the confirmed 71.