Japanese authorities have made a breakthrough in fighting cryptocurrency crime. They’ve arrested 18 people suspected of using Monero (XMR) to pull off a massive fraud scheme.
How the Scam Worked
The suspects allegedly used stolen credit card information to buy stuff on the popular Japanese app Mercari, a kind of online flea market. They managed to make 42 fraudulent purchases between June and July 2021, costing Mercari about 2.7 million yen (around $18,000).
But that’s just the tip of the iceberg. The group is believed to have made almost 900 fake transactions in total, raking in about 100 million yen ($670,000).
Cracking the Code
What makes this case so interesting is that Monero is known for being super private. It’s designed to make it really hard to track where money is going. But the Japanese police managed to do just that, making this the first time they’ve successfully traced Monero transactions and made arrests.
Why Monero is Hard to Track
Monero uses special technology to make it almost impossible to see who’s sending money to whom. This makes it a favorite tool for criminals, but it also makes it hard for law enforcement to catch them.
New Unit Takes on Cybercrime
The investigation started in August 2024 after Japan created a special unit to fight cybercrime involving cryptocurrencies. This shows how seriously they’re taking this kind of crime.
Monero’s Troubled Past
Earlier this year, major cryptocurrency exchanges Binance and Kraken stopped dealing with Monero in some parts of the world. This shows that even though it’s popular with some, it’s also facing challenges.
This case shows that even though Monero is designed to be private, it’s not invincible. Law enforcement is getting better at tracking down criminals who use it.
