South Korean police have arrested three suspects in connection with a fake XRP staking scheme that siphoned 3.4 million XRP — worth about 12.3 billion won — from 71 investors, authorities said. The fraudulent website Fxrpntwork.com promised monthly returns of 1.5% to 1.8% through blog posts, online articles, and YouTube videos. An Interpol Red Notice remains active for a fourth suspect believed to be overseas.
The fake staking website
Fxrpntwork.com presented itself as a legitimate XRP staking platform, luring investors with steady monthly returns. The operators promoted the scheme through a mix of blog posts, online articles, and YouTube videos, building an appearance of credibility. Victims handed over their XRP expecting passive income, but the site was a front — no staking ever took place.
On-chain trail leads to arrests
Investigators tracked the stolen XRP on the blockchain and froze the suspects' wallets within three days of receiving the first report. The alleged ringleader was arrested after returning to South Korea, while two accomplices were caught fleeing within the country. The speed of the on-chain tracing highlights how blockchain transparency can aid law enforcement in crypto fraud cases.
Market reaction
XRP avoided a sharp selloff despite the fraud case, indicating traders viewed it as an isolated criminal incident rather than a network issue. The case reflects South Korea's tougher approach toward crypto-related fraud, but XRP's price remains more sensitive to macroeconomic expectations and overall risk appetite than to isolated enforcement actions.
The Interpol Red Notice for the fourth suspect remains active, and authorities are working with international partners to locate the individual. No further arrests have been announced.
