Japan Cracks Monero: Crime Network Leader Arrested

Special Department of Cyberraducts of the National Police Agency of Japan, in collaboration with law enforcement agencies from nine prefectures, has arrested a large fraud operation using computer systems. The total amount of damage exceeded million yen. (source)

The investigation revealed that an organized criminal group, led by Kobayashi, engaged in money laundering through the Monero cryptocurrency. The Japanese police were able to track the suspect by analyzing transactions in this cryptocurrency.

Between June and July of 2021, the attackers placed non-existent goods on the Mercari trading platform. Using other people’s credit card data, the group conducted 42 fictitious transactions, resulting in the transfer of over 2.75 million yen (~ $18,000) to the fraudsters by the site operator.

This criminal activity spanned from June 2021 to January 2022, during which about 900 illegal operations were carried out. The credit card information was reportedly obtained through phishing sites and fake emails.

Currently, 18 members of the criminal group have been detained by law enforcement agencies. Recruitment of new members was done through announcements of “shadow part-time” positions on social networks, with communication conducted through secure messengers.

The special department of cyber-classes, established in April 2024, joined the investigation in August. Kobayashi’s identity was confirmed through messaging correspondence related to the crimes and the analysis of cryptocurrency movement.

/Reports, release notes, official announcements.