Scammers Steal Millions in XRP Tokens Through Fake Flare Network Website

Seoul police are investigating a fake Flare Network staking website that stole 3.4 million XRP, worth $8.5 million, from 71 investors in 2025, with total losses potentially reaching $19 million. Scammers promoted the site, which promised monthly returns of up to 1.8%, using blogs, Wikipedia, and YouTube. Two suspects are detained on aggravated fraud charges, while police seek an Interpol Red Notice for a third accomplice. Globally, crypto scams cost investors $17 billion in 2025.

Fake Flare Network staking scam

• ▪The genuine Flare Network project, whose name was used by the scammers, debuted in early 2023 and reported over $160 million in total value locked as of late March 2026.
• ▪Seoul police believe the total losses from the fake Flare Network staking scam could rise to up to $19 million in XRP.
• ▪The fraudulent website promised victims monthly returns of 1.5% to 1.8% on their deposits.
• ▪A fake Flare Network staking website in South Korea stole 3.4 million XRP, worth approximately $8.5 million, from 71 investors in 2025.

Fraudulent website promotion tactics

• ▪The scammers operated the fake investment website from October 16 to October 23.
• ▪The scammers promoted the fake website by disseminating false advertising through Naver blogs, online news articles, Wikipedia, and YouTube.

Police arrests of suspects

• ▪South Korean police detained two suspects on aggravated fraud charges in connection with the fake Flare Network website.
• ▪The Cyber Crime Investigation Unit at the Seoul Metropolitan Police is continuing to investigate the fraudulent scheme.

Interpol Red Notice request

• ▪South Korean police secured an arrest warrant for a third accomplice who remains at-large at an unknown overseas location.
• ▪South Korean police requested an Interpol Red Notice to help apprehend the third accomplice in the fake Flare Network scam.

Global crypto fraud trends

• ▪A report by crypto analytics firm Chainalysis stated that as much as $17 billion in cryptocurrency was lost globally to scams and frauds in 2025.
• ▪Chainalysis reported that criminals increasingly used impersonation tactics and artificial intelligence to target victims in 2025.