In Japan, a joint team consisting of the National Police Agency and nine prefectural police departments arrested 18 people who committed fraud using Monero (XMR).
Fraud Methods
According to multiple reports, the defendants used stolen credit card information to make fraudulent purchases, primarily through the second-hand goods sales app Mercari.
During June and July 2021, the accused group caused approximately 2.7 million yen worth of damage to Mercari. In total, around 900 fraudulent transactions were carried out and it is thought they managed to collect 100 million yen ($670,000).
Monitoring Monero
Japanese authorities stated that this case is the first case carried out by monitoring Monero transactions. Monero is known for its strong privacy features that make it difficult to track funds.
Since address balances are not tracked on Monero’s public ledger, analysis on the network is quite limited. Due to these features, it is often difficult to monitor Monero transactions. It was stated that the cyber special investigation unit in Japan was established to combat cyber crimes involving cryptocurrencies, and they played an important role in the operation.
The investigation was launched in August 2024, following the establishment of Japan’s Cyber Special Investigation Unit, which was established to combat cryptocurrency crimes. And today it was revealed that 18 people were identified and arrested. It is unknown how the team detected hidden network activities. Many fictions can be created at the point of detection, including the possibility of trapping members of the organization for corruption on P2P.
Earlier this year, Monero was delisted by Binance, the world’s largest exchange, and Kraken exchange followed Binance’s footsteps in two European countries.
This operation, which took place in Japan, is considered an important step in preventing the criminal use of cryptocurrencies.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
