Japanese authorities arrest 18 suspects in historic Monero trading investigation: report

In a first for Japanese law enforcement, authorities tracked and analyzed Monero (XMR) transactions and arrested 18 suspected fraudsters.

The suspected leader of the group, Yuta Kobayashi (26), has been charged with money laundering through Monero and computer fraud using stolen credit card information.

Money laundering activities through Monero

According to a recent report by local media outlet Nikkei, Kobayashi led a group that used credit cards in other people's names to earn illegal profits. They are said to have laundered money using Monero, a virtual currency that emphasizes privacy.

The National Police Agency's Cyber ​​Special Investigation Team, the Saitama Prefectural Police, and others tracked the transaction and determined the identity of the suspect Kobayashi. The group's activities include listing fake products on the Mercari marketplace from June to July 2021, completing 42 fraudulent transactions using stolen credit card information, and selling 2.75 million yen from the platform. It is alleged that he was defrauded of more than ¥18,400 (equivalent to approximately $18,400).

During the same period, they executed approximately 900 money laundering transactions using Monero, amounting to approximately 100 million yen or $670,000.

Investigators believe the stolen credit card details were likely obtained through a phishing scam via a fake website or email. It was also discovered that the group used anonymous communication apps and recruited members through illegal job postings on various social media platforms.

Monero faces increasing limitations

Monero faces increased scrutiny from regulators around the world as its strong privacy features make it difficult to track transactions and identify users. This has raised concerns that it could be used for illegal activities such as money laundering and tax evasion.

As a result, various countries have taken steps to restrict or ban the use of Monero. For example, Dubai's Virtual Assets Regulatory Authority (VARA) has banned all activities related to privacy coins.

Exchanges such as Kraken have delisted Monero for users in certain regions, reflecting growing regulatory outrage over these cryptocurrencies. Additionally, Europol recently revealed in a report that ransomware groups are increasingly using Monero as an alternative to Bitcoin.