Japan Cracks Down on Altcoin Scamming Gang
A criminal gang in Japan has been apprehended for their involvement 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 conducted approximately 900 fraudulent transactions between June 2021 and January 2022, resulting in the arrest of 18 individuals.
On October 21, the National Police Agency’s Cyber Special Investigation Division, in collaboration 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 stands accused of utilizing stolen credit card information to generate illegal profits. Authorities believe that Kobayashi is the mastermind behind the group that caused losses exceeding 100 million yen.
The gang attempted to launder money using Monero, a cryptocurrency known for its privacy features. However, Japanese authorities were able to trace the transactions back to Kobayashi. This marks the first instance in Japan where the analysis of Monero has led to the identification of a suspect.
Kobayashi and his group are alleged to have listed counterfeit products on the online marketplace Mercari between June and July 2021. They reportedly 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 conducting approximately 900 fraudulent transactions using stolen credit card information between June 2021 and 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 thus far arrested 18 individuals in connection with the crimes. The suspects were recruited through social media platforms offering “illegal part-time jobs.” They communicated with each other using encrypted messaging apps, making it challenging for authorities to track their 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, which was established in 2012 to assist provincial police forces, joined the investigation in August. By conducting detailed analysis of communication records and cryptocurrency transactions, authorities were able to identify Kobayashi as a key suspect.
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