Crypto scam: 99 arrested in Philippine raid on Chinese-run center

Philippine authorities conducted a predawn raid on a Chinese-run scam center in Manila on August 22, arresting nearly 100 individuals involved in crypto and romance scams.

Philippine police raided a Chinese-run scam center in Manilla, Philippines, on August 22, arresting dozens of Filipino and foreign workers who were tricking people into fraudulent investments, according to Barrons. 

The center was operating crypto and romance scams. This consists of scammers pretending to be wealthy models to lure victims into investing on a trading platform. The center, operating under the guise of a licensed online gaming company, was targeted after intelligence reports confirmed the existance of fraudulent activities. 

The raid took place at Centrium Tower 1 in Parañaque City, where 64 foreign nationals, including 56 Chinese citizens, were apprehended. Among those arrested were the center’s manager, owner, and supervisor, all of which are Chinese nationals. Additionally, 32 Filipinos were detained, some of whom claimed they were coerced into working as scammers. The total number of arrests at the time of writing is 99 people.

Earlier this year, the Philippine Securities and Exchange Commission announced plans to introduce crypto regulations in late 2024 to enhance investor security and regulate trading platforms. This move follows a crackdown on unlicensed crypto service providers, including a ban on Binance and efforts to remove its app from major app stores.

Crypto illicit activities

During the raid, police reported that the center employed customer service representatives who posed as wealthy models to entice victims into investing in the fraudulent trading platform. Rooms equipped for indecent shows were also discovered, highlighting the extent of the illicit activities.

This crackdown follows President Ferdinand Marcos Jr.’s recent ban on online gaming operators due to their links to scams, human trafficking, and other crimes. Authorities believe numerous illegal gambling entities and some licensed operators are engaged in similar fraudulent schemes.

Charges under the Cybercrime Prevention Act of 2012 and the Securities Regulations Code are being prepared against those arrested.