Japanese Authorities Uncover Fraudster Through Monero Transaction Analysis

Japanese police have arrested 18 individuals suspected of credit card fraud and laundering over 100 million yen (more than $666,000) through cryptocurrencies, according to local media.

Investigations revealed that from June 2021 to January 2022, the group listed fictitious goods on the Merkari marketplace, receiving payments via previously stolen credit cards. In total, they conducted approximately 900 fraudulent transactions.

The alleged leader of the gang, 26-year-old Yuta Kobayashi, is accused of orchestrating operations amounting to 2.7 million yen (~$18,000) between June and July 2021.

He recruited all group members for “illegal side jobs” through social media, and they communicated via secure messaging apps.

The fraudsters laundered the proceeds using the anonymous cryptocurrency Monero. For the first time, Japanese police were able to identify a suspect by analyzing transactions of this coin.

Previously, a leaked Chainalysis video revealed a method for tracking XMR. The technique involves deploying a large number of “malicious” nodes to capture IP addresses and timestamps of transactions.

In January, Finland’s National Bureau of Investigation reported that it had tracked XMR linked to hacker Julius Kivimäki.