Key Takeaways
- Japan’s National Police Agency has made crypto history by analyzing Monero to make an arrest.
- Yuta Kobayashi, 26, was arrested by Japanese authorities on suspicion of computer fraud.
- Kobayashi was found as a suspect after the agency analyzed around 900 fraudulent Monero transactions in other people’s names.
Japan’s National Police Agency announced it had arrested 18 members of a scam group, including the suspected ringleader, who have been running money laundering schemes.
The investigation, which featured nine prefectural police forces, is the first time authorities have made an arrest of a bad actor by analyzing Monero (XMR) transactions.
Ringleader Arrested
On Monday, Oct. 21, Japan’s police agency said it had arrested Yuta Kobayashi on suspicion of computer fraud.
Kobayashi, 26, is accused of listing fake products on the e-commerce website Mercari between June and July 2021.
The products were then bought across 42 different purchases with credit cards in other people’s names.
Police believe the credit card information was acquired through “phishing” tactics.
According to Japan’s Credit Association, damage from scammed credit cards hit a record high of ¥54.1 billion ($360 million) in 2023.
Monero Aids Arrest
Japan’s police agency said Kobayashi was found a suspect after the agency analyzed around 900 fraudulent Monero transactions in other people’s names.
It is estimated the transactions led to over 100 million yen ($667,216) in damages.
Monero is known for its emphasis on higher anonymity, making it an unfortunate target for bad actors to utilize. Unlike more transparent networks, Monero ensures that transaction details are hidden by default.
The scam group allegedly found new members by advertising part-time jobs on social media.
Japanese authorities believe the group is part of Tokuryu, an online organized crime group that is said to be taking over from the Yakuza in the country.
The news follows a warning from the Federal Bureau of Investigation (FBI) that crypto-related scams are on the rise and becoming increasingly complicated.
In a Sept. 9 report, the FBI revealed that in 2023, over 69,000 reported cases of crypto-related scams resulted in losses of $5.6 billion—marking a 45% spike from the previous year. FBI Director Christopher Wray said crypto scams were “skyrocketing in severity and complexity.”
The stark increase has put extra pressure on authorities to adapt and innovate in order to keep ahead of potential bad actors.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
