Ripple Trade Japan Fraud - Revision history

Azoundria: Another 30 minutes. Review of research paper from Etienne Caquot. Integrated information from Mainchi article. Added prevention section. Prepared promotion. Updated logo.

2024-03-06T18:33:58Z

Another 30 minutes. Review of research paper from Etienne Caquot. Integrated information from Mainchi article. Added prevention section. Prepared promotion. Updated logo.

Show changes

Azoundria: Another 30 minutes complete. Expanded article. Integrated 3 more sources. Expanding timeline.

2024-03-05T23:39:21Z

Another 30 minutes complete. Expanded article. Integrated 3 more sources. Expanding timeline.

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Azoundria: Another 30 minutes complete. About information spread around. Added and organized information better. Integrating information from Tokyo Reporter article.

2024-03-04T20:44:58Z

Another 30 minutes complete. About information spread around. Added and organized information better. Integrating information from Tokyo Reporter article.

Show changes

Azoundria at 23:58, 12 April 2023

2023-04-12T23:58:41Z

← Older revision		Revision as of 17:58, 12 April 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/rippletradejapanfraud.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/rippletradejapanfraud.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	[[File:Rippletradejapan.jpg\|thumb\|Ripple Trade Japan]]The Ripple Trade Japan platform was run a single individual in Tokyo. The service launched in 2014, and by March of 2015 there was no response to requests for withdrawals. Roughly $1m USD was pocketed by the CEO. While he has been arrested, it does not appear that funds were recovered as they'd already been spent.		[[File:Rippletradejapan.jpg\|thumb\|Ripple Trade Japan]]The Ripple Trade Japan platform was run a single individual in Tokyo. The service launched in 2014, and by March of 2015 there was no response to requests for withdrawals. Roughly $1m USD was pocketed by the CEO. While he has been arrested, it does not appear that funds were recovered as they'd already been spent.

	This exchange or platform is based in Japan, or the incident targeted people primarily in Japan.		This exchange or platform is based in Japan, or the incident targeted people primarily in Japan.<ref name="mainichi-7680" /><ref name="mainichi-7681" /><ref name="bitcoinist-7682" /><ref name="ccn-7683" /><ref name="japantimes-7684" /><ref name="haydentifftwitter-7685" /><ref name="epfl-7686" /><ref name="ethereumworldnews-7687" /><ref name="xrpchat-7688" /><ref name="tokyoreporter-7689" /><ref name="xrpchat-7690" /><ref name="rippletradejapanarchive-7691" />
	<ref name="mainichi-7680" /><ref name="mainichi-7681" /><ref name="bitcoinist-7682" /><ref name="ccn-7683" /><ref name="japantimes-7684" /><ref name="haydentifftwitter-7685" /><ref name="epfl-7686" /><ref name="ethereumworldnews-7687" /><ref name="xrpchat-7688" /><ref name="tokyoreporter-7689" /><ref name="xrpchat-7690" /><ref name="rippletradejapanarchive-7691" />

	== About Ripple Trade Japan ==		== About Ripple Trade Japan ==
Line 61:		Line 60:
	!Description		!Description
	\|-		\|-
	\|March 3rd, 2015 ~~12:00:00 AM~~		\|March 3rd, 2015
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
Line 88:		Line 87:
	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
			Funds stored in a multi-signature wallet makes it impossible for one individual to pocket without the signatures of the others. Background checks and security training can further improve the security and prevent such situations.
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

	== Prevention Policies ==		== Platform Prevention Policies ==
	Funds stored in a multi-signature wallet makes it impossible for one individual to pocket without the signatures of the others. Background checks and security training can further improve the security and prevent such situations.		{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

			{{Prevention:Regulators:End}}

	== References ==		== References ==

Azoundria at 00:52, 16 February 2023

2023-02-16T00:52:09Z

← Older revision		Revision as of 18:52, 15 February 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/rippletradejapanfraud.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/rippletradejapanfraud.php}}
			{{Unattributed Citations}}

	[[File:Rippletradejapan.jpg\|thumb\|Ripple Trade Japan]]The Ripple Trade Japan platform was run a single individual in Tokyo. The service launched in 2014, and by March of 2015 there was no response to requests for withdrawals. Roughly $1m USD was pocketed by the CEO. While he has been arrested, it does not appear that funds were recovered as they'd already been spent.		[[File:Rippletradejapan.jpg\|thumb\|Ripple Trade Japan]]The Ripple Trade Japan platform was run a single individual in Tokyo. The service launched in 2014, and by March of 2015 there was no response to requests for withdrawals. Roughly $1m USD was pocketed by the CEO. While he has been arrested, it does not appear that funds were recovered as they'd already been spent.

	This exchange or platform is based in Japan, or the incident targeted people primarily in Japan.		This exchange or platform is based in Japan, or the incident targeted people primarily in Japan.
			<ref name="mainichi-7680" /><ref name="mainichi-7681" /><ref name="bitcoinist-7682" /><ref name="ccn-7683" /><ref name="japantimes-7684" /><ref name="haydentifftwitter-7685" /><ref name="epfl-7686" /><ref name="ethereumworldnews-7687" /><ref name="xrpchat-7688" /><ref name="tokyoreporter-7689" /><ref name="xrpchat-7690" /><ref name="rippletradejapanarchive-7691" />

	== About Ripple Trade Japan ==		== About Ripple Trade Japan ==
Line 39:		Line 41:

	Don't Include:		Don't Include:

	* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.		* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
	* Anything that wasn't reasonably knowable at the time of the event.		* Anything that wasn't reasonably knowable at the time of the event.
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	\|-		\|-
	\|March 3rd, 2015 12:00:00 AM		\|March 3rd, 2015 12:00:00 AM
	\|~~First~~ Event		\|Main Event
	\|~~This is an expanded~~ description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
	\|-
	\|
	\|
	\|
	\|-		\|-
	\|		\|
Line 74:		Line 71:

	== Total Amount Lost ==		== Total Amount Lost ==
	The total amount lost ~~is unknown~~.		The total amount lost has been estimated at $1,000,000 USD.

	How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?		How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
Line 85:		Line 82:

	== Total Amount Recovered ==		== Total Amount Recovered ==
	It is unknown ~~how much was recovered~~.		The total amount recovered is unknown.

	What funds were recovered? What funds were reimbursed for those affected users?		What funds were recovered? What funds were reimbursed for those affected users?
Line 96:		Line 93:

	== References ==		== References ==
	[https://mainichi.jp/english/articles/20171019/p2a/00m/0na/013000c Arrested cryptocurrency business operator misappropriated, invested users' deposits - The Mainichi] (Mar 26)		<references><ref name="mainichi-7680">[https://mainichi.jp/english/articles/20171019/p2a/00m/0na/013000c Arrested cryptocurrency business operator misappropriated, invested users' deposits - The Mainichi] (Mar 26, 2022)</ref>

	[https://mainichi.jp/english/articles/20171018/p2a/00m/0na/009000c Head of ripple cryptocurrency exchange arrested in Japan - The Mainichi] (May 7)		<ref name="mainichi-7681">[https://mainichi.jp/english/articles/20171018/p2a/00m/0na/009000c Head of ripple cryptocurrency exchange arrested in Japan - The Mainichi] (May 7, 2022)</ref>

	[https://bitcoinist.com/japanese-cryptocurrency-exchange-manager-arrested-for-ripple-fraud/ Japanese Cryptocurrency Exchange Manager Arrested For Ripple Fraud \| Bitcoinist.com] (May 8)		<ref name="bitcoinist-7682">[https://bitcoinist.com/japanese-cryptocurrency-exchange-manager-arrested-for-ripple-fraud/ Japanese Cryptocurrency Exchange Manager Arrested For Ripple Fraud \| Bitcoinist.com] (May 8, 2022)</ref>

	[https://www.ccn.com/japanese-police-arrest-ripple-exchange-operator-fraud/ https://www.ccn.com/japanese-police-arrest-ripple-exchange-operator-fraud/] (May 8)		<ref name="ccn-7683">[https://www.ccn.com/japanese-police-arrest-ripple-exchange-operator-fraud/ https://www.ccn.com/japanese-police-arrest-ripple-exchange-operator-fraud/] (May 8, 2022)</ref>

	[https://www.japantimes.co.jp/news/2017/10/18/national/crime-legal/manager-ripple-cryptocurrency-exchange-arrested-scam/ Manager of Ripple cryptocurrency exchange arrested for scam \| The Japan Times] (May 8)		<ref name="japantimes-7684">[https://www.japantimes.co.jp/news/2017/10/18/national/crime-legal/manager-ripple-cryptocurrency-exchange-arrested-scam/ Manager of Ripple cryptocurrency exchange arrested for scam \| The Japan Times] (May 8, 2022)</ref>

	[https://twitter.com/haydentiff/status/920974372533342208 @haydentiff Twitter] (May 8)		<ref name="haydentifftwitter-7685">[https://twitter.com/haydentiff/status/920974372533342208 @haydentiff Twitter] (May 8, 2022)</ref>

	[https://www.epfl.ch/labs/dedis/wp-content/uploads/2020/01/report-2019-1-Etienne-Caquot.pdf https://www.epfl.ch/labs/dedis/wp-content/uploads/2020/01/report-2019-1-Etienne-Caquot.pdf] (May 8)		<ref name="epfl-7686">[https://www.epfl.ch/labs/dedis/wp-content/uploads/2020/01/report-2019-1-Etienne-Caquot.pdf https://www.epfl.ch/labs/dedis/wp-content/uploads/2020/01/report-2019-1-Etienne-Caquot.pdf] (May 8, 2022)</ref>

	[https://ethereumworldnews.com/ripple-exchange-lead-head-arrested-swindling-tokyo/ Ripple Exchange 'Lead Head' Arrested for Swindling - Tokyo - Ethereum World News] (May 8)		<ref name="ethereumworldnews-7687">[https://ethereumworldnews.com/ripple-exchange-lead-head-arrested-swindling-tokyo/ Ripple Exchange 'Lead Head' Arrested for Swindling - Tokyo - Ethereum World News] (May 8, 2022)</ref>

	[https://www.xrpchat.com/topic/10889-japanese-exchange-manager-arrested-for-fraud/ https://www.xrpchat.com/topic/10889-japanese-exchange-manager-arrested-for-fraud/] (May 8)		<ref name="xrpchat-7688">[https://www.xrpchat.com/topic/10889-japanese-exchange-manager-arrested-for-fraud/ https://www.xrpchat.com/topic/10889-japanese-exchange-manager-arrested-for-fraud/] (May 8, 2022)</ref>

	[https://www.tokyoreporter.com/japan-news/breaking/tokyo-police-bust-head-of-virtual-currency-exchange-on-suspicion-of-fraud/ Tokyo police bust head of virtual currency exchange on suspicion of fraud] (May 8)		<ref name="tokyoreporter-7689">[https://www.tokyoreporter.com/japan-news/breaking/tokyo-police-bust-head-of-virtual-currency-exchange-on-suspicion-of-fraud/ Tokyo police bust head of virtual currency exchange on suspicion of fraud] (May 8, 2022)</ref>

	[https://www.xrpchat.com/topic/3790-japan-brand-name-used-for-phishing-attack/ https://www.xrpchat.com/topic/3790-japan-brand-name-used-for-phishing-attack/] (May 8)		<ref name="xrpchat-7690">[https://www.xrpchat.com/topic/3790-japan-brand-name-used-for-phishing-attack/ https://www.xrpchat.com/topic/3790-japan-brand-name-used-for-phishing-attack/] (May 8, 2022)</ref>

	[https://web.archive.org/web/20150107134653/http://www.ripple-trade-japan.com/ https://web.archive.org/web/20150107134653/http://www.ripple-trade-japan.com/] (May 8)		<ref name="rippletradejapanarchive-7691">[https://web.archive.org/web/20150107134653/http://www.ripple-trade-japan.com/ https://web.archive.org/web/20150107134653/http://www.ripple-trade-japan.com/] (May 8, 2022)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/rippletradejapanfraud.php}} Ripple Trade JapanThe Ripple Trade Japan platform was run a single individual in Tokyo. The service launched in 2014, and by March of 2015 there was no response to requests for withdrawals. Roughly $1m USD was pocketed by the CEO. While he has been arrested, it does not appear that funds were recovered as they'd already been spent. T..."

2023-01-24T20:45:10Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/rippletradejapanfraud.php}} thumb|Ripple Trade JapanThe Ripple Trade Japan platform was run a single individual in Tokyo. The service launched in 2014, and by March of 2015 there was no response to requests for withdrawals. Roughly $1m USD was pocketed by the CEO. While he has been arrested, it does not appear that funds were recovered as they'd already been spent. T..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/rippletradejapanfraud.php}}

[[File:Rippletradejapan.jpg|thumb|Ripple Trade Japan]]The Ripple Trade Japan platform was run a single individual in Tokyo. The service launched in 2014, and by March of 2015 there was no response to requests for withdrawals. Roughly $1m USD was pocketed by the CEO. While he has been arrested, it does not appear that funds were recovered as they'd already been spent.

This exchange or platform is based in Japan, or the incident targeted people primarily in Japan.

== About Ripple Trade Japan ==
"Ripple, a San Francisco-based FinTech startup developing enterprise blockchain solutions for the global banking industry, specifically in payments and remittances, sees its blockchains powered by its XRP digital token. At the time of publishing, the total market cap of XRP tokens currently stands at $8.2 billion, making it the third largest cryptocurrency after Bitcoin and Ethereum."

"31-year-old Yuki Takenaka, a resident of Kyoto's Yamashina Ward, ran the company behind the exchange, Ripple Trade Japan (RTJ), by himself." "RTJ was established in May of 2014 in Hamamatsu City, Shizuoka Prefecture. Users of such an exchange deposit money to obtain digital ripple credits that can be exchanged for other currencies or redeemed for cash."

"The cryptocurrency exchange, which was set up by Takenaka in Hamamatsu, Shizuoka Prefecture, in May 2014, began showing signs of distress less than a year later, ignoring customer inquiries and halting withdrawals. Prior to the exchange owner’s disappearance, he had been collecting money and exchanging it for IOUs needed for Ripple online transactions. Users were then able to exchange these IOU notes for Ripple or convert them back into fiat. Takenaka is believe to have issued fake IOUs worth a total value of around 120 million Japanese Yen ($1.06 million USD)."

"[I]nvestigations into the case have uncovered the sloppy fund management that existed at the firm." "Tokyo police also suspect that Takenaka manipulated his company’s systems for personal profit to issue over ¥120 million ($1 million) in IOUs between November 2014 and February 2015. He is alleged to have exchanged some of them with IOUs of other Ripple exchanges before converting them to cash used for personal expenditure and investment at a time when the exchange was already out of money."

"Come March 2015, the façade broke when users were unable to withdraw their deposits and the RTJ’s website shut down soon after." "The matter came to light in March of 2015 after customers of RTJ claiming that they were unable to withdraw their deposits began consulting with police." "[U]sers were unable to withdraw cash or contact him."

"[Takenaka] was arrested on Oct. 18 on suspicion of fraud, misappropriated users' deposits to invest in foreign exchange margin trading, investigative sources have told the Mainichi Shimbun." "The police will search Takenaka’s home and other places in Hamamatsu."

"The manager and operator of Japanese Ripple exchange Ripple Trade Japan [was] arrested for allegedly defrauding a customer for ¥1.4 million ($12,470) with potentially further charges pending."

"The arrested 31-year-old suspect, Yuki Takenaka, a resident of Kyoto's Yamashina Ward, ran the company behind the exchange, Ripple Trade Japan (RTJ), by himself, and investigations into the case have uncovered the sloppy fund management that existed at the firm." "According to the police, Takenaka has admitted to most of the charges."

"The news of Takenaka’s arrest brought a degree of online confusion, with some believing the arrest was directly related to the cryptocurrency and the company Ripple itself. There is, however, no evidence to suggest this other than the fact that the exchange owner was running a Ripple server, which anyone can personally do."

This exchange or platform is based in Japan, or the incident targeted people primarily in Japan.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:

* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - Ripple Trade Japan Fraud
!Date
!Event
!Description
|-
|March 3rd, 2015 12:00:00 AM
|First Event
|This is an expanded description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|-
|
|
|
|}

== Total Amount Lost ==
The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
It is unknown how much was recovered.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?

== Prevention Policies ==
Funds stored in a multi-signature wallet makes it impossible for one individual to pocket without the signatures of the others. Background checks and security training can further improve the security and prevent such situations.

== References ==
[https://mainichi.jp/english/articles/20171019/p2a/00m/0na/013000c Arrested cryptocurrency business operator misappropriated, invested users' deposits - The Mainichi] (Mar 26)

[https://mainichi.jp/english/articles/20171018/p2a/00m/0na/009000c Head of ripple cryptocurrency exchange arrested in Japan - The Mainichi] (May 7)

[https://bitcoinist.com/japanese-cryptocurrency-exchange-manager-arrested-for-ripple-fraud/ Japanese Cryptocurrency Exchange Manager Arrested For Ripple Fraud | Bitcoinist.com] (May 8)

[https://www.ccn.com/japanese-police-arrest-ripple-exchange-operator-fraud/ https://www.ccn.com/japanese-police-arrest-ripple-exchange-operator-fraud/] (May 8)

[https://www.japantimes.co.jp/news/2017/10/18/national/crime-legal/manager-ripple-cryptocurrency-exchange-arrested-scam/ Manager of Ripple cryptocurrency exchange arrested for scam | The Japan Times] (May 8)

[https://twitter.com/haydentiff/status/920974372533342208 @haydentiff Twitter] (May 8)

[https://www.epfl.ch/labs/dedis/wp-content/uploads/2020/01/report-2019-1-Etienne-Caquot.pdf https://www.epfl.ch/labs/dedis/wp-content/uploads/2020/01/report-2019-1-Etienne-Caquot.pdf] (May 8)

[https://ethereumworldnews.com/ripple-exchange-lead-head-arrested-swindling-tokyo/ Ripple Exchange 'Lead Head' Arrested for Swindling - Tokyo - Ethereum World News] (May 8)

[https://www.xrpchat.com/topic/10889-japanese-exchange-manager-arrested-for-fraud/ https://www.xrpchat.com/topic/10889-japanese-exchange-manager-arrested-for-fraud/] (May 8)

[https://www.tokyoreporter.com/japan-news/breaking/tokyo-police-bust-head-of-virtual-currency-exchange-on-suspicion-of-fraud/ Tokyo police bust head of virtual currency exchange on suspicion of fraud] (May 8)

[https://www.xrpchat.com/topic/3790-japan-brand-name-used-for-phishing-attack/ https://www.xrpchat.com/topic/3790-japan-brand-name-used-for-phishing-attack/] (May 8)

[https://web.archive.org/web/20150107134653/http://www.ripple-trade-japan.com/ https://web.archive.org/web/20150107134653/http://www.ripple-trade-japan.com/] (May 8)