Yuta Kobayashi was detained by Japanese authorities on suspicion of using Monero to launder ¥100 million through a fictitious credit card scheme.
Yuta Kobayashi, 26, has been arrested in Japan for allegedly using the cryptocurrency Monero to launder funds from a 100 million yen ($665,800) credit card fraud scheme.
According to a Monday report by Nikkei, the arrest followed an extensive investigation by Japan’s Cyber Special Investigation Division and multiple prefectural police forces.
Yuta Kobayashi’s ‘Illegal Part-Time Jobs’
According to the report, Kobayashi is thought to be the head of a group that carried out fraudulent transactions using credit card information that had been stolen.
クレカ不正疑い、資金洗浄追跡し首謀者逮捕 被害1億円 – 日本経済新聞
— Dr Martin Hiesboeck (@MHiesboeck) October 21, 2024
Japanese police identified suspects by analyzing #Monero money laundering. https://t.co/CBd7yfxAW9
Using the privacy-focused cryptocurrency Monero, which is well-known for its anonymity, the group tried to hide the money trail.
This is the first case in Japan where an arrest has resulted from such analysis, as investigators were able to track Monero transactions.
Between June 2021 and January 2022, Yuta Kobayashi’s group is alleged to have used credit card details that were stolen to conduct approximately 900 fraudulent transactions.
According to reports, these transactions involved phony sales made on websites, such as Mercari, a website that hosts flea markets, where fraudulent listings were made in order to support the scam.
Investigators think that phishing techniques, like using phony websites and misleading emails, are how the credit card information was stolen.
By using this technique, the group was able to process unauthorized transactions and obtain access to private financial data.
According to the investigation, Kobayashi’s group used social media to find volunteers by posting ads for “illegal part-time jobs” in an attempt to entice people to join the scam.
The fact that the group used encrypted messaging applications for communication raised another level of complexity for the investigation.
Credit Card Frauds Rising in Japan
In August, Japan’s Cyber Special Investigation Unit became involved in the investigation, collaborating with local law enforcement to apprehend eighteen suspects.
They were able to identify Kobayashi by tracking Monero flows through the examination of the digital transactions.
The Japan Credit Association reported record damages of 54.09 billion yen in 2023—over 90% stemming from credit card number theft.
From January to June 2024, damages reached 26.82 billion yen, exceeding the 26.28 billion yen recorded during the same period in 2023.