Cryptonews People In Crypto

Organized Crime Mobs ‘Launder USD 275 Million’ in Crypto – Report

Crime Japan

Author

Tim Alper

Author

Tim Alper

About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Author Profile

Last updated:

June 26, 2023

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Tokyo-based organized crime gangs have laundered at least USD 275 million worth of fraud and drug money through cryptocurrency exchanges in the past two years, reports Japanese newspaper Mainichi Shimbum.

The news outlet claims a Chinese man says he brokered a number of deals for major crime rings operating in the Japanese capital, buying Bitcoin and Ethereum on Japanese exchanges. The broker then used these funds to buy Z Cash, Dash and Monero holdings at “five or six” different international exchanges, including HitBTC and Russia-based Yobit.

Mainichi claims the gangs made “dozens” of transfers abroad in hard-to-trace cryptocurrencies before transferring the money back to Japanese exchanges – and eventually withdrawing the money in yen.

Japanese regulators have pressured the country’s licensed cryptocurrency exchanges to adopt stringent anti-money laundering policies. However, authorities say they are powerless to act, as overseas exchanges are often subject to looser regulations.

Newspim quotes a Financial Services Agency official as saying, “Strengthening regulation and supervising domestic transactions alone is not enough to fight money laundering. Other countries need to play a part, too. We need to ask them to take similar measures at G20 meetings.”

Earlier this year, media outlet Asagei reported that reputable financial brokers were willingly playing an intermediary role for the Yakuza’s extensive money laundering efforts.