Report 100m fraud suspect arrested in connection with Monero investigation
Japan’s first arrest related to a Monero-focused investigation has resulted in the capture of a suspected ringleader involved in a ¥100 million credit card fraud scheme. The National Police Agency’s Cyber Special Investigation Unit collaborated on this operation and apprehended the individual, who allegedly profited from stolen credit cards, causing losses exceeding ¥100 million. Nikkei Asia reports that the group utilized Monero (XMR) to launder their illegal gains on October 21. This event marks the first successful implementation of such analysis in Japan to identify a suspect. However, the specific details regarding the tracing process remain undisclosed.
The accused, known as Kobayashi, is charged with listing counterfeit products on an online marketplace. Between June and July 2021, the suspect simulated 42 transactions using stolen credit card information, defrauding the platform of ¥2.75 million in sales payouts. Investigators suspect that the group conducted approximately 900 fraudulent transactions from June 2021 to January 2022, utilizing stolen credit card data likely obtained through phishing schemes.
The police have apprehended 18 individuals linked to the organization. The group recruited members through social media advertisements for “black market jobs” and communicated via encrypted messaging apps. Authorities categorize this syndicate as an “anonymous, fluid crime syndicate.”
Monero is currently facing intensified scrutiny, as several centralized exchanges in Europe have delisted the cryptocurrency. Kraken, in early October, announced that it would cease Monero trading and deposits in the European Economic Area due to regulatory modifications.
Since 2018, Japan’s Financial Services Agency has closely examined privacy-oriented cryptocurrencies. The agency has encouraged domestic exchanges to discontinue support for Monero, Zcash, and other similar currencies in an effort to combat money laundering and cybercrime. In early 2024, analysts from French blockchain analytics firm Kaiko reported that market liquidity for privacy tokens, including Monero and Zcash, had reached record lows as crypto exchanges continued to remove these assets from their listings.
In a separate incident, the Monero community wallet experienced a security breach, resulting in the draining of funds.
