Japanese authorities dismantle Monero-linked scam in landmark investigation
Japans National Police Agency announced that an investigation into Monero (XMR) transactions led to the arrest of 18 individuals involved in a scam, including the suspected ringleader, Yuta Kobayashi.
On Oct. 21, local media outlet Nikkei reported that the arrests followed the agencys analysis of approximately 900 fraudulent Monero transactions, which reportedly caused over 100 million yen ($667,216) in financial damage.
Can Monero be traced?
Monero, a digital asset known for its strong privacy and anonymity features, has attracted the attention of malicious actors who attempt to exploit its security. This has also drawn the scrutiny of regulators, leading several exchanges, such as Kraken and Binance, to delist Monero from their platforms.
The Japanese police said this marks the first known instance of using Moneros blockchain data to track down and apprehend a criminal network. However, the authorities did not disclose specific details beyond analyzing flows about how the transactions were analyzed, leaving room for speculation about the methods employed.
This case comes after a recent controversy involving blockchain analytics firm Chainalysis. The firm claimed that Monero transactions might be traceable, sparking backlash from Monero users.
Meanwhile, a post on Moneros subreddit revealed that the network developers had detected and removed hundreds of malicious node IPs. These nodes, possibly linked to Chainalysis, might have been used to expose the IP addresses of users originating Monero transactions, though no direct confirmation has been made.
Japans pro-crypto moves
This development coincides with the pro-crypto promises of Yuichiro Tamaki, leader of Japans Democratic Party for the People (DPP).
In an Oct. 20 post on X (formerly Twitter), Tamaki proposed reducing the tax on crypto gains to 20%. This is a significant drop from current rates, which treat crypto gains as miscellaneous income.
A translated portion of his statement reads:
If you think crypto assets should be taxed separately at 20% instead of treated as miscellaneous income, please vote for the Democratic Party for the People. There will be no tax when exchanging crypto assets with other crypto assets.
This proposal aligns with Japans Financial Services Agency (FSA) efforts to reassess crypto regulations. The FSA is considering lowering taxes on digital assets and reclassifying them to create a more favorable investment climate.
In recent years, Japan has worked to strengthen its digital asset sector, requiring crypto exchanges to obtain licenses. This move has attracted significant interest from major players such as Binance, further positioning Japan as a growing hub for blockchain and crypto innovation
The post Japanese authorities dismantle Monero-linked scam in landmark investigation appeared first on CryptoSlate.
Read more: https://cryptoslate.com/japanese-authorities-dismantle-monero-linked-scam-in-landmark-investigation/
Text source: CryptoSlate
