Japanese police have successfully identified and arrested suspects involved in the Monero (XMR) altcoin money laundering scheme.
This is the first time authorities in Japan have used Monero analysis to track down criminals. The gang was responsible for around 900 fraudulent transactions between June 2021 and January 2022, resulting in the arrest of 18 people.
As of October 21, the National Police Agency’s Cyber Special Investigation Division, along with a joint task force of nine prefectural police officers including the Saitama Prefectural Police, arrested Yuta Kobayashi (26). Kobayashi, whose address and occupation are unknown, was detained on suspicion of cyber fraud. He is accused of using stolen credit card information to make illegal profits. Authorities believe Kobayashi is the mastermind behind the group that caused losses of over 100 million yen.
The group attempted to launder money using the cryptocurrency Monero, known for its privacy features, but Japanese authorities were able to trace the transactions back to Kobayashi. According to the National Police Agency, this is the first instance in Japan where analysis of Monero led to the identification of a suspect.
Kobayashi and his group are accused of listing fake products on online marketplace Mercari between June and July 2021. They allegedly made 42 fraudulent transactions using stolen credit card information, resulting in the group fraudulently obtaining 2,751,561 yen. The profits were later paid out by the platform’s operating company.
Overall, the group is suspected of making approximately 900 fraudulent transactions using stolen credit card information from June 2021 to January 2022. Investigations suggest that the credit card information was obtained through phishing tactics, including fake websites and spoofed emails.
The task force investigating the incident has so far arrested 18 people in connection with the crimes. The suspects were recruited through social media platforms offering “illegal part-time jobs.” They coordinated their activities using encrypted communication apps, making the group’s operations difficult to track. Authorities believe the men were part of a mobile, anonymous criminal network known as “tokuryu,” which organized and dispersed through social media channels.
The National Police Agency’s Cyber Special Investigation Unit, established in 2012 to assist provincial police forces, joined the investigation in August. Authorities identified Kobayashi as a key suspect through detailed analysis of communication records and cryptocurrency transactions.
*This is not investment advice.
