Japan Arrests Two Suspects in $515,000 Crypto Scam Linked to Cambodian Fake Police Group

Japanese authorities have arrested two suspects in connection with an 81 million yen cryptocurrency scam. The suspects, Saki Okayama and Mitsuki Minamisawa, allegedly helped a fake police fraud group steal cryptocurrency worth $515,000 from a woman in her 40s.

The group, which operates out of Cambodia, used intimidation tactics to pressure their targets into transferring their crypto assets. In this case, the victim was told her bank card was linked to a money laundering investigation and was close to being arrested unless she proved her innocence.

Authorities believe the group is part of a larger operation led by a Chinese national. The scammers claimed that 400 accounts were used to launder funds from a fraud case that led to 600 billion yen in losses.

The Japanese authorities have reported a 42.9% jump in special fraud losses, which now total $151.47 billion. They have also proposed implementing withdrawal delays and stronger checks on newer wallet addresses to prevent fraud proceeds from moving through cryptocurrency exchanges.