Philippine Authorities Raid Chinese-Run Scam Center, Arrest Nearly 100 in Manila

On August 22, predawn raiders from the Philippines targeted a Manila scam center run by Chinese nationals. Nearly 100 people involved in romance and cryptocurrency scams were apprehended as a result of the operation, which marked a major crackdown on fraudulent activity in the area.

The investigation, carried out at Parañaque City’s Centrium Tower 1, was prompted by intelligence inputs verifying the presence of unlawful activities. It was discovered that the scam center was operating fraudulent schemes involving cryptocurrencies and romance scams while posing as a licensed online gaming corporation. Employees at the center tricked victims into making investments on a phony trading platform by dressing up as wealthy models.

Among those apprehended were 64 foreign nationals, including 56 Chinese citizens, and 32 Filipinos. The arrests included the center’s manager, owner, and supervisor, all of whom were Chinese nationals. Several of the detained Filipinos claimed they were coerced into participating in the scams. In total, 99 individuals were arrested during the raid.

Philippines Strengthens Crypto Regulations

This raid comes at a time when the Philippines is ramping up efforts to regulate the cryptocurrency industry. Earlier this year, the Philippine Securities and Exchange Commission (SEC) announced plans to introduce new crypto regulations by late 2024. These regulations aim to enhance investor protection and better regulate trading platforms. The crackdown also aligns with recent actions against unlicensed crypto service providers, including a ban on Binance and attempts to remove its app from major app stores.

During the raid, authorities discovered that the scam center employed customer service representatives who pretended to be affluent models to lure victims. Additionally, rooms equipped for indecent shows were found, further highlighting the extent of the illegal activities. This operation follows President Ferdinand Marcos Jr.’s recent ban on online gaming operators due to their involvement in scams, human trafficking, and other criminal activities. Authorities suspect that many illegal gambling operations and some licensed entities are engaged in similar fraudulent schemes.

The individuals arrested are expected to face charges under the Cybercrime Prevention Act of 2012 and the Securities Regulation Code.