The Philippine National Police (PNP) has detained 19 people suspected of being involved in a fraudulent cryptocurrency scheme and has cautioned Filipinos to avoid risky investments.
The Philippine National Police’s Public Information Office (PNP-PIO) said Tuesday that their Cyber Response Unit, along with composite teams from the Quezon City Police District and the Securities and Exchange Commission (SEC), conducted an operation last June 11 to apprehend the suspects in a hotel in Cubao, Quezon City.
The police did not say how much money was taken from the victims or which cryptocurrency platform was utilized, but PNP officer-in-charge Lt Gen Vicente Danao said it is better if people are suspicious of high-return investments that frequently turn out to be phony.
According to the PNP-PIO, there are scams when trustworthy people persuade customers to deposit money on unregistered cryptocurrency platforms only to discover that the transactions were unlawful.
Danao advised the public to check with the Securities and Exchange Commission (SEC) to see if a company or institution is authorized to offer investment possibilities.
19 people involved in illegal cryptocurrency scheme arrested
“We would like to remind the public not to fall prey to this too-good-to-be-true business, promising a huge amount of return within a span of time. If you encounter anything like this, don’t hesitate to report to authorities,” the PNP official said.
The PNP Anti-Cybercrime Group took custody of the 19 suspects, who will now be charged with violating Sections 8.1, 26.3, and 20.a of the Securities Regulation Code (SRC) in connection with Section 6 of Republic Act No. 10175, also known as the Cybercrime Prevention Act of 2012.
The country has previously prohibited bitcoin platforms from operating locally. In addition, SEC requested that the Astrazion Group discontinue its alleged illicit cryptocurrency-themed investment scheme on May 21.
Astrazion Noble Task Community Foundation, Astrazion Global Holdings Philippines Inc., and Astrazion International were given a cease and desist order by the SEC for engaging in the illegal/unauthorized solicitation, offer, and/or sale of securities before filing the required registration statement and receiving the required SEC approval.
Early this month, the largest cryptocurrency exchange globally, Binance, expressed intentions to invest heavily in local banks and payment service providers to provide more localized services in the Philippines.
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