Japanese Authorities Uncover Major Crypto Scam

Japanese law enforcement, including the National Police Agency and a collaborative task force from nine prefectural police departments, has apprehended 18 suspects linked to a scam involving Monero (XMR).

Reports indicate that the group used stolen credit card information to carry out fraudulent transactions primarily on the flea market platform Mercari.

From June to July 2021, the accused executed 42 fraudulent purchases, resulting in losses of about 2.7 million yen for Mercari. Overall, the group is believed to have conducted approximately 900 fake transactions, accumulating around 100 million yen (approximately $670,000).

This case marks a significant breakthrough for Japanese authorities, as it represents the first successful tracing of Monero transactions leading to arrests.

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Known for its strong privacy protections, Monero employs ring signatures, which effectively obscure transaction details, making it difficult to identify the parties involved. Additionally, its blockchain does not track address balances, complicating on-chain analysis.

The investigation commenced in August 2024, following the formation of Japan’s Cyber Special Investigation Unit, aimed at tackling the growing issue of cryptocurrency-related cybercrime. Earlier this year, Monero was delisted from Binance, the world’s largest exchange, and removed by Kraken in two European nations.

Alexander Stefanov