Gang Caught in Japan Scamming with a Surprise Altcoin
In Japan, where cryptocurrency use is intense, criminals have also mixed an altcoin into their fraud methods.
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.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
MARA's stock jumps after raising $1 billion via convertible notes to buy more bitcoin
MARA Holdings announced the successful closing of its $1 billion offering of 0% convertible senior notes due 2030.The bitcoin miner plans to allocate around $199 million of the proceeds to repurchase $212 million in principal of its existing convertible notes due 2026. The remaining funds will be used to acquire more bitcoin.
Gold loses luster as institutional demand fuels bitcoin price surge, analysts say
Bitcoin’s 46% surge over the past month, contrasted with gold’s 3% decline, highlights a shifting investor preference toward alternative store-of-value assets, analysts say.Derivatives traders are buying up bitcoin call options ahead of Trump’s inauguration, signaling strong bullish sentiment for the beginning of 2024.
SEC is 'engaging' Solana ETF applicants: report
SEC “engaging” on Solana ETF applications, sparking optimism for potential approval in 2025.VanEck, 21Shares, and Bitwise lead Solana ETF filings amid pro-crypto White House hopes.SOL token rises 4.6% to $247.91, bolstered by Solana’s strong DeFi ecosystem and demand.
Shiba Inu Developer Says SHIB Is No Longer a Memcoin