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Fake Flare Network staking site drains $8.5M in XRP, Seoul police say

Seoul police said the operators promised monthly returns of 1.5% to 1.8% and used forged blogs, Wikipedia edits, and YouTube videos before the site shut on October 23.

Reported · Written up by our desk · Market Structure

A fake staking site that impersonated Flare Network and its FXRP token drained 3.4 million XRP from 71 investors, worth 12.3 billion won or about $8.5 million, Seoul police said. According to police, the scheme, which ran for eight days last October, copied Flare Network price data and seeded portal blogs, online news articles, and Wikipedia with false information. Investigators also said the group produced YouTube videos that featured a paid stand in to make the claims look independently corroborated.

Police said the site promised monthly returns of 1.5% to 1.8% with principal guaranteed, then directed investors to move XRP off domestic exchanges through overseas venues and into wallets controlled by the operators. The site shut down on October 23, after which the operators disappeared.

Seoul police said investigators traced 27.3 billion won, about $18.8 million, through wallets linked to the group and froze 17.3 billion won. Police said two men, both 29, have been referred to prosecutors on aggravated fraud charges, while two other suspects were arrested or located abroad under an Interpol Red Notice, with identities not released and no trials yet.

Latest closeXRP $1.083 ▲1.0%

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