Seoul: Three people have been arrested and one has been red-noticed on suspicion of defrauding investors out of 12.3 billion won (US$8.55 million) in an alleged cryptocurrency scam, police said Thursday.

According to Yonhap News Agency, the Seoul Metropolitan Police Agency (SMPA) reported that the suspects created a fraudulent website called "Fxrpntwork.com." They allegedly deceived 71 investors into depositing approximately 3.4 million Ripple (XRP) coins, valued at 12.3 billion won, in October 2025.

The group leveraged portal blog posts, online articles, and YouTube videos to promote the fake platform, falsely promising guaranteed principal along with fixed monthly returns of 1.5 to 1.8 percent, as stated by the SMPA.

Victims were instructed to transfer their XRP from domestic exchanges to designated wallets through an overseas exchange. After the funds were transferred, the suspects shut down the site and went into hiding.

Police initiated an investigation last October after receiving intelligence on rising crypto fraud cases. They managed to limit investor losses by tracing the transaction paths and freezing the suspects' crypto wallet within three days of receiving the initial tip-off.

The ringleader was apprehended at a hideout in South Korea upon returning from abroad. Following this, two accomplices were arrested at their hideouts while attempting to flee across the country. One of them was recently referred to prosecutors.

Authorities have secured an arrest warrant and requested an Interpol Red Notice for the last accomplice, who remains at large overseas.

"We will strictly respond to cyber frauds involving cryptocurrency under a zero-tolerance policy," a police official stated, urging investors to exercise caution against unverified investment claims.