A fake Flare Network staking site has drained 3.4 million XRP (CRYPTO: XRP) from 71 investors, with total losses potentially reaching $19 million as investigations continue, according to a report by the Seoul Metropolitan Police Agency on Thursday.
How The Scam Actually Worked
As South Korean news outlet Chosun reported, the fraudulent site operated from October 16 to October 23, 2025, promising investors monthly returns of 1.5% to 1.8% on XRP deposits.
The scammers built credibility by using the name of a genuine blockchain project and spreading fake advertising across Naver blogs, online news articles, Wikipedia, and YouTube.
Two men were detained on aggravated fraud charges and a third accomplice remains at large at an unknown overseas location, Chosun reported.
Seoul police obtained an arrest warrant and requested an Interpol Red Notice for the fugitive, according to Korea JoonAng Daily.
Why Flare Network Was The Target
Flare Network has deep roots in the XRP ecosystem, debuting in early 2023 and reporting over $160 million in total value locked as of late March 2026, with more than 887,000 active addresses.
Its real-world credibility made it an effective cover for the scammers to exploit.
“We will strictly respond to cyber frauds involving cryptocurrency under a zero-tolerance policy,” a Seoul police official said, according to Korea JoonAng Daily, urging investors to verify any investment claims before depositing funds.
How Big Is The Broader Crypto Scam Problem?
Crypto analytics firm Chainalysis estimated in January that scammers and fraudsters stole as much as $17 billion in cryptocurrency worldwide during 2025.
Criminals increasingly relied on impersonation tactics and artificial intelligence to target victims at scale, the firm added.
The Seoul case fits that pattern precisely — a convincing fake of a legitimate project, amplified through mainstream platforms, targeting retail investors drawn in by yield promises that real staking products rarely match.
XRP Price Update — July 30, 2026
| Type | Price | Why It Matters |
| Resistance | $1.0963 | 20-Day EMA — first ceiling above current price |
| Resistance | $1.1294 | 50-Day EMA — next meaningful hurdle |
| Resistance | $1.1824 | 0.618 Fibonacci — first major upside target |
| Resistance | $1.2298 | 0.786 Fibonacci — major target on continuation |
| Current Price | $1.0904 | +1.67% on the day |
| Support | $1.0744 | 0.236 Fibonacci — immediate floor |
| Support | $1.0078 | June low — last defense before uncharted territory |
Photo via Shutterstock
Login to comment