The Tokyo Metropolitan Police Department and the National Police Agency of Japan have arrested six individuals on suspicion of laundering 91 million yen in cryptocurrency - approximately $580,000 or equivalent to IDR 9.1 billion. Funds from dozens of social media investment scam victims were funneled into digital assets through a corporate account before being sent abroad.
What tipped authorities off to the operation was not a single large transaction, but rather an accumulation of deposits from over a dozen different regions.
How the Weather Account Scheme Worked
Among the six suspects, police detained Keisuke Tanaka (36), president of staffing agency Weather based in Izumisano, Osaka Prefecture, along with Yusuke Shibuya (45), a Tokyo resident. Both were arrested alongside four others for violations of the Act on Punishment of Organized Crimes.
The investigation initially focused on a single transaction worth 4.4 million yen on February 16, 2024. Tracing that initial transaction led authorities to uncover a much larger flow of funds: a total of roughly 91 million yen moved between February and March 2024. The money originated from around 30 victims of social media investment fraud across 15 prefectures in Japan.
The scheme utilized Weather’s bank account to receive funds sent by victims. Once the cash entered the corporate account, the funds were converted into crypto assets - with Bitcoin and USDT identified in the transactions - through overseas channels. Once the conversion was complete, the crypto assets were transferred back to the primary fraud syndicate.
The Role of ‘Aitaiya’ and Syndicate Crackdown
Within the operation’s structure, Tanaka allegedly acted as an ‘aitaiya’ - an informal crypto exchange intermediary or operator facilitating cash-to-crypto trades outside licensed exchanges. In exchange for their conversion and money transfer services, the suspects allegedly collected a one percent commission on the total transaction volume.
Law enforcement authorities are not targeting only the individuals involved. Weather as a corporate entity will also be referred to prosecutors on suspicion of concealing proceeds of crime.
The crackdown highlights Japanese authorities’ increasing scrutiny on crypto transfer loopholes and social media investment fraud. For the public and crypto enthusiasts, the case spanning Osaka and Tokyo offers a clear picture: fraud syndicates exploit legal business entities to disguise illicit proceeds before moving them abroad using Bitcoin and USDT.
Reported via crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
