Philippine Authorities Arrest 99 People in Massive Cryptocurrency & Romance Scam Operation

TLDR:

• 99 people arrested in raid on crypto scam hub in Parañaque City, Philippines
• Scam involved cryptocurrency investment fraud and romance scams
• 67 foreign nationals and 32 Filipinos arrested, including Chinese managers
• Company was unregistered and forced employees into fraudulent activities
• Charges being prepared under cybercrime and securities regulations laws

On August 22, 2024, Philippine authorities conducted a raid on a suspected cryptocurrency scam hub in Parañaque City, resulting in the arrest of 99 individuals.

The operation, carried out by the National Capital Region Police Office (NCRPO), targeted the offices of AIA Company, an unregistered entity allegedly involved in cryptocurrency investment fraud and romance scams.

The raid, which took place around 2 a.m. at Centrium Tower 1, came after intelligence reports confirmed the company’s fraudulent activities.

Operatives of the National Capital Region Police Office raid an alleged scam hub in Parañaque City, Source.

Among those arrested were 67 foreign nationals, including 59 Chinese citizens, and 32 Filipinos. The company’s top management, including the manager, owner, and supervisor, all Chinese nationals, were among those taken into custody.

According to Maj. Gen. Jose Melencio Nartatez, chief of the NCRPO, the company employed a sophisticated scheme to defraud victims. Customer service representatives (CSRs) were reportedly forced to pose as wealthy models to entice potential victims into investing in a manipulated cryptocurrency trading platform.

The operation also uncovered rooms equipped for filming indecent shows, highlighting the extent of the illicit activities.

Filipino employees claimed they were coerced into participating in the scams and forced to perform compromising roles.

Some were made to dress provocatively and engage in inappropriate conduct to lure victims. This underscores the exploitative nature of the operation and the vulnerability of local workers drawn into such schemes.

The raid is part of a broader crackdown on illegal online activities in the Philippines.

Earlier this year, President Ferdinand Marcos Jr. implemented a ban on online gaming operators due to their links to various crimes, including scams and human trafficking. This latest operation suggests that authorities are intensifying efforts to combat cyber-enabled financial crimes.

The Philippine Securities and Exchange Commission had previously announced plans to introduce cryptocurrency regulations later in 2024 to enhance investor protection and regulate trading platforms.

This move follows efforts to crack down on unlicensed crypto service providers, including a ban on major exchanges like Binance.

During the operation, authorities seized numerous electronic devices, including routers, computers, and cell phones, which are expected to provide crucial evidence for the ongoing investigation. The scale of the operation suggests that it may have targeted a significant number of victims both domestically and internationally.

Law enforcement officials are preparing to file charges against the arrested individuals under the Cybercrime Prevention Act of 2012 and the Securities Regulations Code of the Philippines. These legal actions aim to address both the technological aspects of the fraud and the financial regulatory violations involved in the scheme.