Cryptocurrency Scam Exploded in the Philippines: Nearly 100 Arrested in Raid on Chinese-Run Center

In a major move against cybercrime, Philippine law enforcement agencies conducted a raid on a Chinese-run fraud center in Manila in the early hours of August 22. The raid resulted in the arrest of nearly 100 individuals allegedly involved in cryptocurrency and romance scams, marking a significant step in the country’s ongoing efforts to combat online fraud.

A well-organized fraud operation

The raid, which took place at Centrium Tower 1 in Parañaque City, was the result of extensive intelligence gathering by Philippine law enforcement agencies. The targeted establishment was operating under the guise of a licensed online gaming company, but was actually a hub for orchestrating sophisticated frauds targeting unsuspecting victims. The scammers, posing as wealthy models, lured victims into investing in fraudulent cryptocurrency trading platforms.

Among those arrested were 64 foreigners, including 56 Chinese, as well as the center’s managers, owners and supervisors, all of whom were Chinese. Also arrested were 32 Filipinos, some of whom were alleged to have been forced to participate in the illegal activities.

Personal harm and legal consequences

The scale of the operation highlights the significant human cost of these scams. Many people working at the center were reported to have been tricked or coerced into participating, highlighting the complex and often coercive nature of these illegal operations. The raid also uncovered a room equipped for pornographic shows, further highlighting the scope of criminal activity taking place within the facility.

In response to the arrest, authorities are preparing charges under the Cybercrime Prevention Act of 2012 and the Securities Regulation Act. These charges are expected to serve as a stern warning to others who engage in similar illegal activities.

Widespread crackdown on cryptocurrency scams

The raid is part of a larger initiative by the Philippine government to regulate the cryptocurrency market and protect investors from fraudulent schemes. Earlier this year, Philippine Securities and Exchange Commission announced plans to introduce comprehensive cryptocurrency regulations by the end of 2024. The move follows a series of crackdowns on unlicensed cryptocurrency service providers, including a ban on Binance and efforts to remove apps from major app stores.

The government’s efforts to combat cryptocurrency-related crimes coincide with President Ferdinand Marcos Jr.’s recent decision to ban online gaming operators for their alleged links to fraud, human trafficking, and other criminal activities. Authorities believe that numerous illegal gambling establishments and even some licensed operators may have been involved in similar fraud schemes, further justifying the need for strict regulatory measures.

Also Read: Australian Regulators Crack Down on More Than 600 Crypto Frauds in One Year