Nikkei: Chinese criminal groups use “fake cryptocurrencies” to launder money in Japan, providing cross-border cover for fentanyl dirty money

Japanese media exposes a cross-border scam involving a Chinese group suspected of impersonating zkSync to issue fake tokens. The organization uses Japanese companies and accounts as money laundering nodes, with some funds overlapping with fentanyl raw material trading crime networks.

Fake zkSync token scam exposed, Japan becomes cross-border fund transfer hub

Japanese media recently uncovered a cross-border cryptocurrency scam involving a Chinese criminal group. Investigations indicate that the organization is suspected of issuing counterfeit tokens under the guise of zkSync to raise funds from investors, using Japan as a money transfer and money laundering hub.

According to investigation data, the group promotes the so-called "zkSync JP" tokens via social media, messaging apps, and investment communities, claiming cooperation or official backing from the well-known Layer 2 project zkSync, to attract investors to buy.

In reality, the related tokens have no connection to zkSync official. After investors put in funds, the assets ultimately flow into wallets controlled by the criminal organization, forming a typical fake token investment scam pattern.

Investigation finds some funds overlap with fentanyl network

According to Nikkei Asia's investigation, some of the funds behind the involved organization intersect with Chinese criminal networks engaged in fentanyl raw material trading.

The report points out that some involved individuals have long been active in underground financial markets, engaging in cross-border remittances, money laundering services, and illegal fund transfers. Cryptocurrency has become one of the key tools for these organizations to facilitate cross-border fund flows.

Investigators found that after multiple wallet transfers, the funds flow into accounts involved in chemical raw material trade, underground payment networks, and other cross-border criminal activities. There is currently no evidence that all participants in the scam are directly involved in fentanyl trading, but law enforcement believes that they may share some fund channels, money laundering networks, and criminal infrastructure.

Image source: Nikkei Asia Fentanyl stored at DEA laboratory in New York

Japanese companies and accounts become cover tools for criminal groups

Investigations show that Japan has gradually become an important relay point for some cross-border cryptocurrency crimes in recent years.

Due to Japan’s mature financial system, active cryptocurrency market, and well-established corporate setup environment, some criminal organizations choose to establish companies, open bank accounts, or build trading networks in Japan, then transfer funds to other regions.

In this case, the suspects used Japanese company names for marketing and fundraising, increasing investor trust and making law enforcement investigations more difficult.

Some funds are initially transferred within Japan, then flow through cryptocurrency exchanges, over-the-counter traders, and cross-chain tools to overseas addresses, forming a complex cross-border fund transfer network.

Fake token scams continue to rise, with well-known projects frequently misused

In recent years, cases of fake tokens issued in the name of well-known blockchain projects have been increasing. Criminal groups often exploit projects that have not yet officially launched tokens, lack market information, or where investors hope to participate in early-stage opportunities, by creating imitation websites, forging whitepapers, and social media accounts to attract funds.

Especially when a popular project has a large community following, it becomes more vulnerable to being impersonated by scammers. Investors relying solely on community information, chat rooms, or unofficial websites may be misled by false promotional content.

This case also highlights that the relationship between cryptocurrency scams, cross-border money laundering, and traditional criminal activities is attracting more law enforcement attention. From fake token fundraising, underground financial services, to cross-border fund transfers, digital assets have become an important tool for some criminal organizations. Regulatory agencies and law enforcement worldwide are continuously strengthening investigations into related fund flows.