Japanese authorities have arrested a group of 18 individuals involved in a money-laundering operation using the privacy-focused cryptocurrency Monero (CRYPTO:XMR).
This case marks the first time Japan’s law enforcement agencies have successfully traced Monero transactions to identify criminal activity, according to local media outlet Nikkei.
The suspects, including the group’s alleged leader, Yuta Kobayashi, are accused of laundering approximately 100 million yen (around $670,000) through Monero and engaging in computer fraud.
Authorities analyzed nearly 900 Monero transactions to track the group’s activities.
The investigation began in August after the formation of the National Police Agency’s Cyber Special Investigation Unit in April, which aims to combat Japan’s rising cybercrime.
While Japanese officials have not yet provided detailed insights into the techniques used for tracing Monero transactions, this breakthrough could have significant implications for future law enforcement efforts against privacy-focused cryptocurrencies.
In recent years, authorities have faced increasing challenges in dealing with cybercrimes related to cryptocurrencies, which often involve sophisticated methods and digital anonymity.
However, physical crimes connected to digital assets have also been on the rise globally.
For instance, in August, four Chinese nationals in Thailand forced a victim at gunpoint to transfer $2 million worth of cryptocurrency.
Similar incidents have been reported in Ukraine and London, where victims were coerced to transfer their digital assets.
Despite the maturing crypto industry, crimes related to hacks and scams continue to pose significant hurdles.
Data from Crystal Intelligence revealed that over $19 billion worth of cryptocurrencies have been stolen across 785 reported hacks and exploits over the past 13 years.
In 2024 alone, crypto crimes surged, with $542.7 million worth of stolen funds reported in the first quarter—a 42% increase from the same period in 2023.
At the time of writing, the Monero price was $156.28.