Japanese authorities track Monero apprehend 18 individuals involved in a 670K money laundering incident

Japanese authorities arrested a gang of 18 alleged scammers by analyzing Monero transactions for the first time in crypto history.
Japanese authorities said they analyzed about 900 of the group’s Monero (
XMR
)-based money-laundering transactions, which totaled about 100 million yen ($670,000).
Japanese authorities
told
local media outlet Nikkei that this marked the first time the country’s law enforcement agencies had used Monero transactions to identify criminals.
The criminal group and its suspected leader, Yuta Kobayashi, were arrested for money laundering through the privacy-preserving cryptocurrency Monero and for computer fraud.


Security incidents by chain in the third quarter of 2024. Source: CertiK
The gang of 18 had been under investigation since August, shortly after the formation of the National Police Agency’s Cyber Special Investigation Unit, which was formed in April to tackle Japan’s increasing cybercrime.
Cointelegraph asked Japanese authorities about their analysis of
the Monero transactions
that led to the arrests, but received no immediate reply.
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Ledger users targeted by malicious ‘clear signing’ phishing email
Crypto crimes: a growing issue for law enforcement, not just in cyberspace
While cyberattacks are an issue in the digital space, authorities are also grappling with more physical attacks and violent crimes related to cryptocurrency.
On Aug. 4, a gang of four Chinese nationals broke into a gated estate in Pathum Thani, Thailand, and
forced
a victim to transfer $2 million worth of cryptocurrency at gunpoint.
In July, four men
kidnapped
a foreigner in Kyiv, Ukraine, who was known to hold Bitcoin (
BTC
). The attackers forced the victim to transfer his three Bitcoin to their wallets before strangling him.
$3 billion stolen in hacks — Why are crypto crimes surging? Source: YouTube
This came after a June 17 incident in London, when three armed men used machetes to invade a home, forcing the
owner
to transfer 1,000 Ether (
ETH
) worth over $2.5 million. Luckily, the victim suffered no physical harm.
Related:
South Korean crypto CEO stabbed in court during Haru Invest fraud trial
Crypto scams steal $19 billion in 13 years
Despite signs of a maturing industry, crypto scams and exploits remain an issue.


Crypto hacks and scams per year by US dollar value. Source: Crystal intelligence
Almost
$19 billion worth of crypto was stolen
in the past 13 years across 785 reported hacks and exploits, according to a Crystal Intelligence report shared with Cointelegraph.
The biggest single crypto theft case remains the 2019 Plus Token fraud, in which attackers netted $2.9 billion worth of Bitcoin and Ether.
Crypto hacks and exploits remain one of the biggest problems impeding mainstream trust and adoption.
Crypto hacks in 2024 could potentially top
2023, as the first quarter of 2024 saw $542.7 million worth of stolen funds, a 42% increase compared to the same period in 2023.
Magazine:
Fake Rabby Wallet scam linked to Dubai crypto CEO and many more victims