South Korean police have arrested three suspects accused of stealing 12.3 billion won — roughly $9 million — from 71 investors in a fake XRP trading platform. The Seoul Metropolitan Police Agency announced the arrests on July 30, saying the suspects set up a fraudulent cryptocurrency exchange that disappeared after collecting deposits.
How the scam worked
Investigators say the suspects lured victims with promises of high returns on XRP investments. They operated a bogus platform that mimicked a legitimate exchange, complete with a professional-looking website and marketing materials. Once investors transferred funds, the platform went dark. The three individuals are now in custody, though police have not released their names or ages.
Losses could climb higher
The confirmed theft covers 71 victims, but the total may be far larger. Police traced 27.3 billion won — about $20 million — through the suspects’ accounts, suggesting additional victims have yet to come forward. Investigators are working to identify more affected users and recover stolen assets. The discrepancy between the known losses and the traced funds points to a wider network of victims, possibly across multiple countries.
What happens next
The Seoul Metropolitan Police Agency is continuing its investigation, focusing on whether the suspects acted alone or as part of a larger ring. Authorities are urging anyone who invested through the now-defunct platform to report their losses. The case highlights the persistent risk of fake crypto exchanges, which have bilked investors worldwide. Police have not set a date for the suspects’ formal charges, but they remain in custody as the probe expands.
