Japan Cracks Down on Scam Involving Surprise Altcoin
In a country known for its widespread use of cryptocurrencies, criminals in Japan have found a new way to carry out fraudulent activities by incorporating an altcoin into their schemes.
The Japanese police have successfully apprehended and arrested individuals involved in a money laundering scheme using the altcoin Monero (XMR). This marks the first time that Japanese authorities have used Monero analysis to track down criminals. The gang was responsible for approximately 900 fraudulent transactions between June 2021 and January 2022, leading to the arrest of 18 individuals.
On October 21, the National Police Agency’s Cyber Special Investigation Division, in collaboration with a task force composed of nine prefectural police officers, including the Saitama Prefectural Police, arrested Yuta Kobayashi (26). Kobayashi, whose address and occupation remain unknown, was detained on suspicion of cyber fraud. He is accused of using stolen credit card information to generate illicit profits. Authorities believe that Kobayashi is the mastermind behind the group that caused losses exceeding 100 million yen.
The group attempted to launder money using the privacy-focused cryptocurrency Monero, 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 Monero analysis has led to the identification of a suspect.
Kobayashi and his group are accused of listing counterfeit products on the online marketplace Mercari between June and July 2021. They allegedly conducted 42 fraudulent transactions using stolen credit card information, resulting in the group fraudulently obtaining 2,751,561 yen. The profits were later disbursed by the platform’s operating company.
Overall, the group is suspected of carrying out approximately 900 fraudulent transactions using stolen credit card information from June 2021 to January 2022. Investigations indicate that the credit card information was obtained through phishing tactics, including fake websites and spoofed emails.
The task force investigating the incident has thus far arrested 18 individuals in connection with the crimes. The suspects were recruited through social media platforms that offered “illegal part-time jobs.” They coordinated their activities using encrypted communication apps, making it challenging for authorities to track the group’s operations. It is believed that the men were part of a mobile and 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. Through detailed analysis of communication records and cryptocurrency transactions, authorities were able to identify Kobayashi as a key suspect.
*This article does not provide investment advice.
