Japanese authorities spot 18 suspects in historic Monero transaction investigation: report

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

Yuta Kobayashi, the 26-year-old alleged leader of the group, has been accused of laundering funds through Monero and engaging in computer fraud by exploiting stolen credit card data.

Money laundering activities through Monero

According to a recent report by local media outlet Nikkei, Kobayashi led a group that profited illicitly from the use of credit cards in other people’s names. They allegedly laundered money using the privacy-focused cryptocurrency Monero.

The National Police Agency’s Special Cyber ​​Investigation Unit and the Saitama Prefectural Police, along with other authorities, were able to trace the transactions and identify Kobayashi. The group’s operations involved listing fake products on the “Mercari” marketplace and completing 42 fraudulent transactions with stolen credit card information in June and July 2021, defrauding the platform of more than 2.75 million yen, worth approximately of $18,400.

During the same period, they made about 900 money-laundering transactions with Monero, worth about 100 million yen or $670,000.

Investigators believe the stolen credit card details were likely obtained through phishing scams using fake websites or emails. They also discovered that the group used anonymous communication apps and recruited members through illegal job listings on various social media platforms.

Monero is facing increasing restrictions

Monero has faced increasing scrutiny from regulators around the world due to its strong privacy features, which make it difficult to track transactions and identify users. This has raised concerns about its potential use in illegal activities, such as money laundering and tax evasion.

As a result, several countries have implemented measures to restrict or ban the use of Monero. For example, Dubai’s Virtual Asset Regulatory Authority (VARA) banned all activities involving privacy coins.

Exchanges like Kraken have pulled Monero for users in certain regions, reflecting a growing trend of regulatory ire directed at these cryptocurrencies. Additionally, Europol recently revealed in its report that ransomware groups are increasingly using Monero as an alternative to Bitcoin.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!