Cryptocurrency Money Laundering Crime Group 'Faceless Monster': Understanding the Reality and Countermeasures of Anonymous and Fluid Criminal Groups

Recently, a new type of criminal organization called 'Tokumei・Ryudoga Tanzai' (匿名・流動型犯罪グループ, commonly known as Tokuryu), which is described as a 'faceless monster' that launders money from various crimes such as fraud, cryptocurrency investment fraud, and illegal casinos, has been attracting attention. The National Police Agency, the Ministry of Justice, and other relevant agencies have declared war on this 'Tokuryu' and are struggling to find solutions.

We will summarize what 'Tokuryu' is, how they commit crimes, and what countermeasures are being taken.

■ The Cunning and Anonymous Methods of 'Tokuryu'

'Tokuryu' refers to anonymous and fluid criminal groups that use SNS and other means to conceal their identities. Specifically, they differentiate between the instigators and the executors, making it difficult to identify the executors. They also utilize SNS to change the recruitment of accomplices and methods of operation, emphasizing anonymity and fluidity.

While criminal organizations have typically had hierarchical structures, 'Tokuryu' operates as a fluid organization with no discernible core, making it challenging to even identify their existence.

The police and prosecutors acknowledge that the main crimes associated with 'Tokuryu' include investment fraud, voice phishing, illegal gambling, illegal part-time work, and pornography.

■ Strong Countermeasures Against 'Tokuryu' Are Underway

In response, the Ministry of Justice and the National Police Agency have launched initiatives to establish a 'Tokuryu Task Force' and a joint investigative system. They are also strengthening cooperation with relevant domestic and international organizations and considering a complete revision of the Anti-Money Laundering Act to significantly enhance penalties.

According to the National Police Agency, the number of arrests related to money laundering reached a record high of 709 in the past year. The head of the Special Crime Investigation Division stated, "The significant increase in arrests is due to the surge in crimes committed by Tokuryu." He also emphasized that they will further strengthen crackdowns on these groups.

Meanwhile, a Ministry of Justice official stated, "We consider Tokuryu to be a threat of the same magnitude." They added that they will work closely with related organizations to focus on dismantling Tokuryu organizations and eradicating their criminal proceeds.

■ Organized Crime Utilizing 'Tokuryu' and Their Methods

As mentioned earlier, 'Tokuryu' leverages its anonymity and fluidity to perpetrate various crimes. The most prominent offenses include investment fraud, cryptocurrency fraud, voice phishing, and prostitution brokerage.

1. Investment Fraud 'Tokuryu' recruits accomplices through SNS and then carries out actual investment fraud. A typical method involves using fake company accounts to transfer criminal proceeds for money laundering.

2. Cryptocurrency Fraud 'Tokuryu' establishes servers overseas and operates cryptocurrency investment fraud websites using these servers. They launder the proceeds of fraud through accounts of accomplices recruited via SNS. The anonymity provided by cryptocurrency transactions has made their methods even more cunning.

3. Illegal Casinos and Gambling 'Tokuryu' promotes gambling websites and online casinos through SNS and recruits users. They launder the criminal proceeds earned through gambling using the same method as before, by utilizing fake company accounts.

4. Brokerage 'Tokuryu' also specializes in brokering customers for illegal prostitution and entertainment establishments. They threaten and extort money from customers in debt to entertainment venues or force them into prostitution. They launder the extorted money or prostitution proceeds in this process.

5. Key Examples of Exposed Cases A group arrested by Osaka Prefecture Police in May laundered over 10 billion yen per month. They managed approximately 4,000 fake company accounts for money laundering. In another case, a fraudulent group was found to have laundered 20 billion yen in government subsidies that were overpaid.

In this way, 'Tokuryu' has established a sophisticated black market by earning massive criminal proceeds through cutting-edge fraud techniques and laundering these proceeds.

■ Crackdowns on 'Tokuryu' and System Improvements for Anti-Money Laundering

The government and relevant agencies, including the police, have launched a crackdown operation against 'Tokuryu'. They plan to actively issue arrest warrants for high-value money laundering crimes and strengthen crackdowns by establishing dedicated investigation teams and special investigation teams, as well as by enhancing money tracing techniques.

Furthermore, each agency is working on legal revisions to prevent criminal proceeds laundering. The Ministry of Justice will comprehensively revise the 'Anti-Money Laundering Act' and increase penalties, including a maximum prison sentence of 10 years, in addition to fines.

Financial authorities have also decided to strengthen regulations on 'Virtual Asset Service Providers' that 'Tokuryu' exploits. This includes considering mandatory measures such as real-name verification for institutions, account monitoring, continuous transaction reporting, and verification of the source of funds.

Other initiatives include preventing the issuance of anonymous accounts, utilizing white hackers for hacking prevention, and various other policies. Experts point out that improving technical capabilities and establishing international cooperative investigation systems are urgently needed.

Authorities are expected to continue their response to 'Tokuryu' in the future. Simultaneously, self-rectification efforts by related companies and banks are anticipated. We hope that through continuous efforts by authorities and the private sector, 'Tokuryu' can be eradicated.