Fake Flare Site Drains $8.5M in XRP; Seoul Police Detain Two Suspects

Woofun AI reports that Seoul police have detained two individuals for operating a counterfeit Flare Network staking platform, an incident confirmed by Chosun and Korea JoonAng Daily to have drained significant XRP holdings from numerous investors.

The operational window of the fraud was brief, spanning from Oct. 16 to Oct. 23, yet the financial impact was severe. Victims were lured by promises of 1.5% to 1.8% monthly returns on deposits labeled "Rippke," a tactic disseminated via Naver blogs, online news articles, Wikipedia, and YouTube.

Woofun AI data shows the scheme resulted in the loss of 3.4 million XRP, valued at approximately $8.5 million, from 71 investors last year. While two men face aggravated fraud charges, a third alleged scammer remains at large, prompting authorities to seek an Interpol Red Notice. Investigators suspect the true scale of the theft is larger, with potential losses estimated at up to $19 million.

The perpetrators exploited the credibility of Flare Network, a project with deep roots in the XRP ecosystem that debuted in early 2023. By late March 2026, the legitimate network reported over $160 million in total value locked and more than 887,000 active addresses, highlighting the contrast between the genuine project's growth and the fraudulent scheme. Police officials emphasized a zero-tolerance policy toward such cyber frauds, urging caution against unverified investment claims.

This incident aligns with broader industry trends identified by Chainalysis, which noted in January that global crypto losses to scams and frauds reached $17 billion in 2025. Criminals are increasingly leveraging impersonation tactics and artificial intelligence to industrialize victim targeting, marking a persistent threat to digital asset security.