Japanese police have arrested 30-year-old Chinese account opening on one of the cryptocurrency exchanges of Japan with the purpose of resale.
Lin Xiaolin, living in Tokyo, was arrested on March 15. According to reports the South China Morning Post in July last year, Xiaolin opened the scoring in the cryptocurrency exchange market in Tokyo. He logged on to the exchange server from China and using Vietnamese personal data of the citizen, whose name was not disclosed, registered account.
As suggested by the police data of the citizen of Vietnam were received via messages in Facebook. For them, Xiaolin paid 30,000 yen (about $315). The details included name, date of birth, address and other information required to create user accounts in online services such as cryptocurrency exchanges. These data were used to create a fraudulent account at an unnamed Tokyo stock exchange between 6 and 9 July. The accused denies all the charges against him.
According to Japanese authorities, when the account is created Xiaolin immediately sold it to a criminal group for 100,000 yen (about $1000). Police believe that the group uses fraudulent accounts at cryptocurrency exchanges to convert funds received from third parties. All the accused were found six cryptocurrency accounts, three of which were involved in fraudulent transactions, police said.
Caolina the arrest occurred after the detention of four Vietnamese nationals in February of this year. It is assumed that these people have provided the defendant the information necessary to create fraudulent accounts.
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The financial services Agency (FSA) of Japan is trying to impose order on cryptocurrency exchanges. According to the regulator, many of the platforms in Japan do not have adequate security measures. In January of this year, the Japanese stock exchange CoinCheck has undergone to hacker attack. Cybercriminals have managed to steal over half a billion dollars. It is the largest hacking cryptocurrency exchanges today. However CoinCheck has refunded all the affected users. According to rumors, the Japanese company-financial services company Monex has expressed interest in buying CoinCheck.