Philippine Police Raid Alleged Cryptocurrency Scam, Arrest 277

According to a Sept. 15 report by local news outlet Inquirer.net, agents from the Bureau of Immigration, the Presidential Anti-Corruption Commission and the National Police’s Integrity Monitoring and Enforcement Group raided the offices of Grapefruit Services Inc. in Pasig City on Sept. 11. 

Philippine police have reportedly raided the offices of an alleged cryptocurrency scam that was targeting investors in China.

Authorities reportedly received a tip from the Chinese Embassy, which claimed that the firm had already defrauded thousands of investors in mainland China.

Immigration Commissioner Jaime Morente said that the Chinese government cancelled the passports of all the employees, which made them illegal workers in the Philippines. Officials arrested 277 employees of the firm, all of whom are Chinese nationals.

Special economic zone

An unnamed source told Inquirer.net that Grapefruit is an authorized service provider of Golden Millennial Quickpay Inc. Ltd., which operates under a special license from the Cagayan Economic Zone Authority (CEZA).

CEZA – a government-owned corporation – oversees the Cagayan Special Economic Zone and Freeport, which is a special economic area in the north of the country. Also known as the Cagayan Freeport, the zone aims to attract foreign and local investment. The Philippine government began allowing cryptocurrency firms to operate there in April 2018.

Inquirer.net states that the firm was operating outside of the designated zone, and thus had run afoul of Philippine financial regulations.

Special regulations for cryptocurrencies

At the beginning of this year, the Philippine Securities and Exchange Commission (PSEC) postponed the issuance of final regulations for initial coin offerings (ICO), having introduced a draft version in August 2018.

In the draft, the PSEC stated that the tokens emitted during an ICO should be classified as securities, and “therefore, these should be registered with the Commission and necessary disclosures need to be made for the protection of the investing public.”

In February 2019, CEZA introduced a set of rules governing digital asset token offerings. The rules were designed to regulate the cryptocurrency industry and protect investors, affecting such issues as the acquisition of utility and security tokens.

Spread the love
FacebookTwitterLinkedinRedditMixWhatsappWordPressTelegramVkontakte
Share
Tags: Blockchain China Crimes Cryptocurrencies philippines Police

Recent Posts

Ethereum’s One Month Correlation with BTC Drops to 68% as $3k Beckons
  • Ethereum News 2

Ethereum’s One Month Correlation with BTC Drops to 68% as $3k Beckons

$3k Possible for Ethereum in the Month of May. Ethereum’s ongoing…

Ethereum 2.0 Deposit Contract Now Holds 4M ETH Worth $10.8B
  • Ethereum News 2

Ethereum 2.0 Deposit Contract Now Holds 4M ETH Worth $10.8B

Ethereum Aims for new ATHs as Options and Futures Expire…

Tesla sold 10 percent of its bitcoins. Cause of concern for cryptocurrency investors?
  • News coin 2

Tesla sold 10 percent of its bitcoins. Cause of concern for cryptocurrency investors?

Tesla released its first quarter 2021 earnings earlier this week.…

Gemini Exchange to Issue Its Own Credit Card for Cryptocurrency Cashbacks
  • News coin 2

Gemini Exchange to Issue Its Own Credit Card for Cryptocurrency Cashbacks

Users of the large cryptocurrency exchange Gemini will soon get…

Iranian government will use mined cryptocurrency to fight economic sanctions
  • News coin 2

Iranian government will use mined cryptocurrency to fight economic sanctions

Iran continues to explore the potential use of cryptocurrencies as…

Ethereum’s Recent High Fees Pushed More USDT to Tron
  • Ethereum 2019 News

Ethereum’s Recent High Fees Pushed More USDT to Tron

Tether’s Market Cap Hits $50 Billion. Mr. Ardoino’s comments were in…