A Monero-focused investigation has reportedly led to Japan’s first arrest of a suspected ¥100 million credit card fraud ringleader.

Breakthrough in Monero Investigation

A joint effort by Japan’s National Police Agency’s Cyber Special Investigation Unit has resulted in the arrest of a ringleader accused of profiting from stolen credit cards, with total losses exceeding ¥100 million. This marks a significant milestone in cybercrime investigations in Japan.

Methods Used in the Fraud

According to a recent report, the group allegedly utilized Monero to launder the proceeds from their illicit activities. Investigators managed to track the flow of Monero, making it the first successful use of such analysis in Japan to identify a suspect. However, the exact methods of tracing remain undisclosed.

The main suspect, Kobayashi, is accused of listing fake products on an online marketplace and simulating 42 transactions using stolen credit card details between June and July 2021. This fraudulent activity defrauded the platform of ¥2.75 million in sales payouts. Investigators believe the group conducted approximately 900 fraudulent transactions between June 2021 and January 2022, using credit card information likely obtained through phishing schemes.

Group Recruitment and Communication

The police have arrested 18 individuals connected to the group. Recruitment was conducted through social media advertisements for “black market jobs,” and communication was maintained using encrypted messaging apps. Authorities have classified the organization as an “anonymous, fluid crime syndicate.”

Monero Under Scrutiny

The arrest comes amid increasing pressure on Monero, with multiple delistings from centralized exchanges in Europe. In early October, Kraken announced it would halt Monero trading and deposits in the European Economic Area due to regulatory changes.

Japan’s Financial Services Agency has been scrutinizing privacy-focused cryptocurrencies since 2018, urging domestic exchanges to drop support for Monero, Zcash, and similar assets to curb money laundering and cybercrime. Analysts from French blockchain analytics firm Kaiko reported that market liquidity for privacy tokens, including Monero and Zcash, had fallen to all-time lows as crypto exchanges continued to remove these assets from their listings.

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