South Korean Police Arrest Three in US$8.5 Million Crypto Investment Scam

South Korean police have arrested three suspects and requested an Interpol Red Notice for a fourth individual in connection with an alleged 12.3 billion won (US$8.5 million) cryptocurrency investment scam that targeted 71 investors.

According to the Seoul Metropolitan Police Agency, the group allegedly operated a fraudulent investment platform, Fxrpntwork.com, which falsely promoted Ripple (XRP) investment opportunities. The suspects used blog posts, online articles and YouTube videos to advertise guaranteed principal protection and monthly returns of 1.5% to 1.8%, convincing victims to transfer approximately 3.4 million XRP through overseas cryptocurrency wallets.

Police said the website was shut down after the funds were received, leaving investors unable to recover their assets.

The investigation began in October 2025 following reports of increasing cryptocurrency investment fraud. Authorities said investigators traced blockchain transactions and froze the suspects' crypto wallet within three days of receiving the initial intelligence, helping prevent further losses.

The alleged ringleader was arrested after returning to South Korea from overseas, while two other suspects were apprehended at separate locations across the country. One has since been referred to prosecutors. Police have also obtained an arrest warrant and requested an Interpol Red Notice for a fourth suspect believed to have fled abroad.

The case highlights continued enforcement efforts against cryptocurrency investment fraud, as regulators and law enforcement agencies increasingly use blockchain tracing and international cooperation to pursue cross-border financial crime.

Police urged investors to remain cautious of cryptocurrency platforms promising guaranteed returns or fixed profits, warning that such claims are common features of investment scams.