Fake staking site drains $8.5 million in XRP from dozens of investors promising easy yield

In 2025, a fraudulent staking website impersonating the Flare Network tricked 71 investors into depositing a total of 3.4 million XRP, valued at approximately $8.5 million, according to the Seoul Metropolitan Police. The fake site promised monthly returns of 1.5% to 1.8%, using the name of the legitimate Flare blockchain project to gain trust. The scammers promoted this fraudulent investment opportunity via Naver blogs, online news articles, Wikipedia, and YouTube.

Authorities believe the theft could be even larger than initially identified, estimating potential losses up to $19 million in XRP. Two suspects have been detained on aggravated fraud charges, while a third accomplice remains at large, with police securing an arrest warrant and requesting an Interpol Red Notice to facilitate their capture. The investigation is ongoing as officials continue to gather evidence and seek additional victims.

This case highlights the growing prevalence of crypto-related scams globally, particularly those involving impersonation tactics and the industrialization of fraud schemes using artificial intelligence. Crypto analytics firm Chainalysis reported that about $17 billion in cryptocurrency was lost to scams and fraud worldwide in 2025. Seoul police emphasized a zero-tolerance policy toward cyber fraud and urged investors to be cautious of unverified investment claims.