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

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.