Important points
- The Japanese National Police Agency made virtual currency history by analyzing and arresting Monero.
- Yuta Kobayashi (26) was arrested by Japanese authorities on suspicion of computer fraud.
- As a result of the agency's analysis of approximately 900 fraudulent Monero transactions in other people's names, Kobayashi was discovered as the suspect.
Japan's National Police Agency announced the arrest of 18 members of a fraud group, including the suspected ringleader of the money laundering scheme.
This investigation, in which nine prefectural police departments participated, is the first time that authorities have analyzed Monero (XMR) transactions and arrested bad actors.
Mastermind arrested
The Japanese National Police Agency announced this on Monday, October 21st. Yuta Kobayashi was arrested on suspicion of computer fraud.
Kobayashi (26) is suspected of listing fake products on the e-commerce site “Mercari” from June to July 2021.
Products were then purchased 42 times using credit cards in other people's names.
Police believe the credit card information was obtained through a “phishing'' method.
According to the Japan Credit Association, the amount of damage caused by credit card fraud in 2023 reached a record high of 54.1 billion yen ($360 million).
Monero aids arrest
The Japanese National Police Agency announced that Kobayashi was discovered as a suspect after analyzing approximately 900 fraudulent Monero transactions in other people's names.
The transaction is estimated to have resulted in more than 100 million yen ($667,216) in damages.
Monero is known for its emphasis on high anonymity, making it an unfortunate target for malicious actors to exploit. Unlike more transparent networks, Monero ensures that transaction details are hidden by default.
The fraud group is said to have found new members by advertising part-time job openings on social media.
Japanese authorities believe the group is part of Tokuryu, an online organized crime group said to operate on behalf of the country's Yakuza.
The news follows a warning from the Federal Bureau of Investigation (FBI) that crypto-related scams are on the rise and becoming increasingly complex.
The FBI revealed in a report on September 9 that in 2023, more than 69,000 crypto-related scams were reported resulting in losses of $5.6 billion, an increase of 45% from the previous year. FBI Director Christopher Wray said cryptocurrency fraud is “expanding in severity and complexity.”
This rapid increase is putting additional pressure on authorities to adapt and innovate ahead of potential bad actors.
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