Law enforcement across Asia intensified scrutiny of cryptocurrency-related crime this week, with Japanese police arresting six people over a suspected laundering scheme and Malaysian authorities opening an investigation into a reported $3.05 million wallet theft.
Japan: The Tokyo Metropolitan Police Department and the National Police Agency’s Special Cybercrime Investigation Department arrested six suspects on suspicion of violating the Organized Crime Punishment Act by concealing criminal proceeds. The arrests concern an initial 4.4 million yen ($28,000) transaction on February 16, 2024, involving the temporary staffing company Weather. Among those arrested were Weather president Keisuke Tanaka and suspected intermediary Yusuke Shibuya.
Investigators suspect approximately 91 million yen ($580,000) moved through the operation during February and March 2024, with funds linked to social media investment scams affecting around 30 victims in 15 Japanese prefectures. Weather allegedly received about 1% commission for converting suspected fraud proceeds into cryptocurrency before transfers were sent back to the fraud organization through overseas channels. Some accounts identified Bitcoin and USDT as currencies involved in the suspected conversion process, though reports did not establish precise amounts moved through each asset. Police planned to refer the company itself to prosecutors.
The Japan arrests follow increased regulatory attention to crypto-enabled fraud. In August 2026, the Financial Services Agency requested stronger measures from domestic exchanges to prevent criminals from quickly withdrawing assets linked to fraud. Japan’s National Police Agency recorded 9,523 social media investment fraud cases during 2025, with reported losses reaching approximately 128.8 billion yen.
Malaysia: Perak police chief Mohd Alwi Zainal Abidin confirmed a 38-year-old man in Teluk Intan discovered unauthorized cryptocurrency transfers around 1 p.m. on October 9. The estimated loss is RM12.47 million ($3.05 million). The Bukit Aman Commercial Crime Investigation Department’s cryptocurrency unit is assisting with tracing the transactions. The case is being investigated under Section 420 of Malaysia’s Penal Code, which covers cheating offenses.
Authorities have not identified the suspect, the compromised wallet, the stolen cryptocurrencies, the blockchain involved, or the technical intrusion method. Police issued general security advice urging users not to share recovery phrases, private keys or passwords, and to review transaction records and separate long-term storage wallets from everyday wallets. No arrests, charges, asset freezes or recoveries have been announced.
