Japanese authorities have arrested a gang of 18 alleged scammers by analyzing Monero transactions—marking the first time in crypto history that Monero has been used to track criminals. Authorities reported that they examined about 900 Monero (XMR) transactions conducted by the group, totaling approximately 100 million yen ($670,000).
The arrests represent a significant breakthrough for Japan’s law enforcement agencies. The National Police Agency’s newly formed Cyber Special Investigation Unit, established in April to combat the country’s growing cybercrime problem, spearheaded the investigation. The gang had been under surveillance since August.
The group’s suspected leader, Yuta Kobayashi, along with others, was arrested for money laundering through Monero and computer fraud. This is the first time Japanese law enforcement has successfully used Monero transactions to identify and apprehend criminals, highlighting advancements in tracking privacy-focused cryptocurrencies.
While cyberattacks remain a major concern in the digital space, authorities are also dealing with a rise in physical crimes tied to cryptocurrency. For example, in August, a gang of four Chinese nationals forced a victim to transfer $2 million in cryptocurrency at gunpoint in Thailand. Similar incidents have occurred globally, including kidnappings and home invasions where victims were coerced into transferring their digital assets.
Despite signs of the crypto industry maturing, hacks and scams continue to pose significant challenges. According to a Crystal Intelligence report, nearly $19 billion worth of crypto has been stolen over the past 13 years across 785 reported hacks and exploits. The infamous Plus Token fraud in 2019 remains the largest single crypto theft, involving $2.9 billion worth of Bitcoin and Ether.
Crypto hacks are expected to surge in 2024, with the first quarter alone seeing $542.7 million worth of stolen funds—a 42% increase compared to the same period in 2023. As both physical and digital crimes involving crypto persist, law enforcement agencies worldwide are enhancing their capabilities to combat these threats.