Japanese authorities trace Monero, arrest 18 in $670K laundering case

For the first time in crypto history, Japanese authorities arrested a gang of 18 scammers by analyzing Monero transactions.

Japanese authorities analyzed approximately 900 Monero ( XMR )-based money laundering transactions from the gang of scammers, which caused approximately 100 million yen ($670,000) worth of damage during their criminal activity.

Japanese authorities told local media outlet Nikkei that this marks the first time in history that the country’s law enforcement agencies have used Monero transactions to identify a group of criminals.

The criminal group and their suspected leader, Yuta Kobayashi, have been arrested for money laundering through the privacy-preserving cryptocurrency Monero and computer fraud.

Security incidents by chain in the third quarter of 2024. Source: CertiK

The gang of 18 has been under investigation since August, shortly after the formation of the National Police Agency’s Cyber Special Investigation Unit, which was formed in April to tackle the growing cybercrime in the country.

Cointelegraph has approached Japanese authorities concerning their analysis of the Monero transactions that led to the arrests.

Related: Ledger users targeted by malicious ‘clear signing’ phishing email

Crypto crimes: a growing issue for law enforcement, not just in cyberspace

While cyberattacks are an increasing issue in the digital space, authorities are grappling with increasingly more physical attacks and violent crimes related to cryptocurrency.

On Aug. 4, a gang of four Chinese nationals broke into a gated estate in Pathum Thani, Thailand and forced the victim to transfer $2 million worth of cryptocurrency at gunpoint.

Earlier in July, four men kidnapped a foreigner in Kyiv, Ukraine, who was known to hold Bitcoin ( BTC ). The attackers forced the victim to transfer his three Bitcoin to their wallets before strangling him.

$3 billion stolen in hacks — Why are crypto crimes surging? Source: YouTube

This comes after the June 17 incident in London, when three armed men used machetes to invade a home, forcing the owner to transfer 1,000 Ether ( ETH ) worth over $2.5 million. Luckily, the victim suffered no physical harm.

Related: South Korean crypto CEO stabbed in court during Haru Invest fraud trial

Crypto scams steal $19 billion in 13 years

Crypto scams and exploits remain a growing concern, despite signs of a maturing crypto industry.

Crypto hacks and scams per year by US dollar value. Source: Crystal intelligence

Nearly $19 billion worth of crypto was stolen in the past 13 years across 785 reported hacks and exploits, according to a Crystal Intelligence report shared with Cointelegraph.

The largest single crypto theft case remains the 2019 Plus Token fraud when attackers netted $2.9 billion worth of Bitcoin and Ether.

Crypto hacks and exploits remain one of the biggest hurdles impeding mainstream trust and adoption. Crypto hacks in 2024 could potentially top 2023, as the first quarter of 2024 saw $542.7 million worth of stolen funds, a 42% increase compared to the same period in 2023.

Magazine: Fake Rabby Wallet scam linked to Dubai crypto CEO and many more victims