Japan arrests 18 fraud suspects, launders $670,000 through Monero, marking the first time this cryptocurrency has been used to track down criminals.
On October 21, Japanese authorities successfully dismantled a large-scale fraud and money laundering network, arresting 18 suspects. Notably, this is the first time in the history of cryptocurrencies that Japan has used Monero, a cryptocurrency known for its high security and anonymity features, to track down and identify criminals.
According to information from the Nikkei newspaper, the criminal group led by Yuta Kobayashi carried out around 900 Monero transactions to launder money, with a total value of up to 100 million yen (equivalent to $670,000). The group is accused of money laundering and computer fraud. The investigation was launched in August 2024, shortly after the National Police Agency's Cybercrime Special Investigation Team was established in April 2024 to address the growing problem of cybercrime.
Has the security feature of Monero been breached?
Japan's use of Monero to trace criminals marks a significant turning point in the fight against cryptocurrency-related crime. Until now, Monero has been considered a "haven" for illegal activities due to its ability to conceal user identities and transaction histories. However, this case shows that even the most secure cryptocurrencies can be "unlocked" by authorities.
Currently, the Japanese authorities have not disclosed the details of the method used to analyze Monero transactions that led to the arrests.
In addition to cyber attacks, violent crimes related to cryptocurrencies are also becoming increasingly complex. Recently, several cases of robbery and kidnapping targeting cryptocurrency have occurred in Thailand, Ukraine, and the UK.
Although the cryptocurrency market is gradually maturing, fraud and attacks remain a persistent problem. According to a report from Crystal Intelligence, nearly $19 billion in cryptocurrencies have been stolen over the past 13 years through 785 attacks and exploits. In the first quarter of 2024 alone, the amount of cryptocurrency stolen reached $542.7 million, an increase of 42% compared to the same period in 2023.
