Massive Cryptocurrency Scam Hub Busted in the Philippines

Authorities arrest 99 individuals in a raid uncovering forced labor and financial fraud in Parañaque City.

Philippine authorities have dismantled a significant cryptocurrency scam operation in Parañaque City, arresting 99 individuals during a raid on August 22, 2024. The National Capital Region Police Office (NCRPO) targeted the offices of AIA Company, an unregistered entity deeply involved in cryptocurrency investment fraud and romance scams. Among the arrested were 67 foreign nationals, including 59 Chinese citizens, and 32 Filipinos, with the company’s top management also taken into custody.

Maj. Gen. Jose Melencio Nartatez, NCRPO Chief, revealed that the fraudulent operation used customer service representatives (CSRs) to pose as wealthy models, luring victims into investing in manipulated crypto platforms. The extent of the illicit activities was further highlighted by the discovery of rooms equipped for filming indecent shows. Filipino employees reported being coerced into compromising roles, underscoring the operation's exploitative nature.

This raid is part of a broader crackdown on illegal online activities in the Philippines, following President Ferdinand Marcos Jr.’s earlier ban on online gaming operators linked to crimes such as scams and human trafficking. The arrest comes as the Philippine Securities and Exchange Commission prepares to introduce cryptocurrency regulations later this year, aiming to enhance investor protection and regulate trading platforms.

Authorities seized numerous electronic devices, including routers, computers, and cell phones, which are expected to provide critical evidence in the ongoing investigation. The scale of the operation suggests that it may have targeted a significant number of victims, both domestically and internationally. Legal charges are being prepared under the Cybercrime Prevention Act of 2012 and the Securities Regulations Code of the Philippines, addressing both the technological aspects of the fraud and the financial regulatory violations involved in the scheme.

photo source / Blockonome