Couple arrested over $19 million bitcoin scam in Philippines

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Updated 12 April 2018
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Couple arrested over $19 million bitcoin scam in Philippines

  • Authorities and experts warn of 'high risk' of investing in cryptocurrencies .
  • “Glowing reviews and optimistic projections have been heaped on the Philippine economy, particularly regarding its financial system.

MANILA: Philippine authorities have warned the public to be wary of the criminal use of cryptocurrencies after the arrest of a couple for allegedly defrauding more than 100 people who poured at least 1 billion Philippine pesos (more than $19 million) into their bitcoin investment scam.

The Philippine National Police (PNP) earlier this week presented Arnel Ordonio and his wife, Leonady — the registered owners of NewG Bitcoin Trading, which was allegedly involved in cryptocurrency trading — to the media. The couple, both in their 20s, were arrested by the PNP Criminal Investigation and Detection Group (CIDG) last April 4 after an entrapment operation.

The suspects actively promoted NewG through social media and convinced people to invest with the promise that they would get large guaranteed returns on their money in the span of two weeks. 

Some of their victims, however, said that in December last year they began to sense that they had been duped after they were unable to contact the suspects, who by then had posted on social media that they could no longer issue a payout to investors. 

CIDG chief Director Roel B. Obusan told Arab News that complainants against the couple continue to arrive in their office, while others have reported them to the National Bureau of Investigation. “So this is really a large-scale scam,” he said.

Based on their initial assessment, Obusan said that the suspects had amassed up to 1.6 billion Philippine pesos. Some of their alleged victims have refused to file a formal affidavit of complaint. “So from those who gave their formal complaint, the money swindled by the suspects amounted to 900 million Philippine pesos,” Obusan said. 

For those considering joining the cryptocurrency craze, Obusan warned: “There’s no investment that can give that much (a very high profit). If the offer seems too good to be true (they better think twice).”

Stephen Cutler, a former US FBI anti-money laundering and financial crime expert, said the biggest advantage that bitcoin scammers had was the lack of knowledge on the part of victims, “which is the case with any fraud.”

“Bitcoin is a very complex technology and unfortunately many Filipinos, or many people around the world, are not taking the time to study and to understand what it’s all about. And so they’re getting involved in it thinking that it’s easy, that it can be another get-rich-quick scheme, and it’s not,” he told Arab News.

“I personally do not recommend that people have anything to do with bitcoin or any of the cryptocurrencies at this point in time because it is so new. The technology is still evolving and we just don’t know enough about it yet to make it safe,” he said.

“It is not well regulated in any country around the world” and when an investor loses money “there is no recourse to try to get their money back,” Cutler said. 

However he added that: “Bitcoin is definitely real.”

Meanwhile, Sen. Sonny Angara said that despite the country’s economic gains, there was a need to improve the financial literacy of Filipinos “to enable them to be a part of inclusive growth as well as equip them with skills that will protect them against scams.”


“Glowing reviews and optimistic projections have been heaped on the Philippine economy, particularly regarding its financial system. Opportunities abound on account of these developments but many Filipinos do not even have a basic grasp of economic and financial concepts,” Angara said.

According to the senator, the recent discovery of the Ordonios’ fraudulent bitcoin investments only illustrates that Filipinos are  lacking in financially literacy as they are still falling prey to schemes that promise huge returns in a short span of time.

“This is not the first time that we have seen scams that have victimized our hapless kababayan (citizens) whose only intention is to earn legitimate income for their families. Their lack of knowledge of the financial system and investment, however, will only continue the cycle of victimization if we do not address this,” Angara said.

The Bangko Sentral ng Pilipinas (BSP), or central bank, in an infographic distributed for the public, highlighted that “virtual currencies  (VCs) are not legal tender in the Philippines since they are not issued nor guaranteed by the BSP or any government authority.”

“The BSP does not license VCs nor endorse VC as a currency or investment instrument,” it said.


China says top military official Miao Hua suspended, under investigation

Updated 16 sec ago
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China says top military official Miao Hua suspended, under investigation

  • Latest senior apparatchik to fall in a sweeping crackdown on graft in the country’s armed force
  • Unconfirmed reports say defense minister Dong Jun was also placed under investigation for corruption
BEIJING: China said Thursday that top military official Miao Hua had been removed from office and was suspected of “serious violations of discipline,” the latest senior apparatchik to fall in a sweeping crackdown on graft in the country’s armed forces.
The ruling Chinese Communist Party “has decided to suspend Miao Hua from duty pending investigation,” Wu Qian, spokesman of China’s Ministry of Defense, told a press briefing.
Wu did not provide further details about the charges against Admiral Miao, a member of Beijing’s powerful Central Military Commission.
But “serious violations of discipline” are commonly used by officials in China as a euphemism for corruption.
The announcement follows reports, unconfirmed by Beijing, that Defense Minister Dong Jun has been placed under investigation for corruption.
If confirmed, Dong would be the third Chinese defense minister in a row to be probed for graft.

India’s parliament suspended temporarily after row over allegations against Adani group

Updated 40 min 29 sec ago
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India’s parliament suspended temporarily after row over allegations against Adani group

  • The problem is that India’s states are unprepared for the rapid rise in renewable generating capacity, lack adequate transmission infrastructure and storage

NEW DELHI: Both houses of Indian parliament were suspended temporarily on Thursday within minutes of opening as opposition lawmakers disrupted proceedings for the third day this week seeking a discussion on allegations against the Adani Group.

US authorities have accused Gautam Adani, his nephew Sagar Adani and managing director of Adani Green, Vneet S. Jaain, of being part of a scheme to pay bribes of $265 million to secure Indian solar power supply contracts, and misleading US investors during fund raises there.

“We want a discussion on this in parliament. It is going to be the third day that we are demanding a reply from the prime minister” on the Adani issue, Manickam Tagore, a lawmaker from the main opposition Congress party, which has been leading the protests against the business group, told news agency ANI.

Many of India’s opposition parties accuse Prime Minister Narendra Modi and his Bharatiya Janata Party (BJP) of favoring Adani and blocking investigations against him in India, accusations both have denied.

Congress leader Rahul Gandhi, who has been a vocal critic of Adani, said Gautam Adani, 62, should be arrested.

While the government has not made any comment on the indictment, Modi’s BJP has said it had no reason to defend Adani, adding that the party was not against industrialists and considered them partners in nation-building efforts.

“Let him defend himself,” BJP spokesperson Gopal Krishna Agarwal said on Tuesday, adding that the law would take its course.


Landslides in Indonesia’s Sumatra kill at least 27, rescuers search for missing

Updated 28 November 2024
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Landslides in Indonesia’s Sumatra kill at least 27, rescuers search for missing

  • Torrential rain in the province since last week had caused flash floods and landslides in four different districts
  • Extreme weather is expected in Indonesia toward the end of 2024, as the La Nina phenomenon increases rainfalls across the tropical archipelago

JAKARTA: Indonesian rescuers are searching for passengers trapped in a minibus buried in mud after flash floods and landslides hit several locations in North Sumatra province, killing at least 27, an official said on Thursday.
Torrential rain in the province since last week had caused flash floods and landslides in four different districts, Indonesia’s disaster agency has said.
A landslide in a village in Deli Serdang on Wednesday killed seven and injured 20, Hadi Wahyudi, North Sumatra police spokesperson told Reuters.
Rescuers were looking for missing people, including those trapped in a minibus and other vehicles on a hilly interprovince road hit by a mudslide, he said, adding he could not give an estimate for the number of affected people.
In other places, rescuers have found 20 dead during a search that started over the weekend. They are still searching for two missing.
“Today, we’re focusing our search to find missing people and clearing the roads affected by the landslides,” said Hadi, adding excavators were deployed.
The landslides and flash floods damaged houses, mosques, and rice fields.
Heavy rains also triggered floods in the provincial capital of Medan, forcing a delay in votes for a regional election in some polling stations.
Extreme weather is expected in Indonesia toward the end of 2024, as the La Nina phenomenon increases rainfalls across the tropical archipelago, the country’s weather agency has warned.


The Australian Senate debates the world’s first social media ban for children under 16

Updated 28 November 2024
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The Australian Senate debates the world’s first social media ban for children under 16

  • The bill that would make social media platforms liable for fines of up to $33 million for systemic failures to prevent young children from holding accounts

MELBOURNE: The Australian Senate was debating a ban on children younger than 16 years old from social media Thursday after the House of Representatives overwhelmingly supported the age restriction.
The bill that would make platforms including TikTok, Facebook, Snapchat, Reddit, X and Instagram liable for fines of up to 50 million Australian dollars ($33 million) for systemic failures to prevent young children from holding accounts.
It is likely to be passed by the Senate on Thursday, the Parliament’s final session for the year and potentially the last before elections, which are due within months.
The major parties’ support for the ban all but guarantees the legislation will become law. But many child welfare and mental health advocates are concerned about unintended consequences.
Unaligned Sen. Jacqui Lambie complained about the limited amount of time the government gave the Senate to debate the age restriction, which she described as “undercooked.”
“I thought this was a good idea. A lot of people out there thought it was a good idea until we looked at the detail and, let’s be honest, there’s no detail,” Lambie told the Senate.
Opposition Sen. Maria Kovacic said the bill was not radical but necessary.
“The core focus of this legislation is simple: It demands that social media companies take reasonable steps to identify and remove underage users from their platforms,” Kovacic told the Senate.
“This is a responsibility these companies should have been fulfilling long ago, but for too long they have shirked these responsibilities in favor of profit,” she added.
Sen. David Shoebridge, from the minor Greens party, said mental health experts agreed that the ban could dangerously isolate many children who used social media to find support.
“This policy will hurt vulnerable young people the most, especially in regional communities and especially the LGBTQI community, by cutting them off,” Shoebridge told the Senate.
The House of Representatives on Wednesday overwhelmingly carried the bill 102 votes to 13.
Communications Minister Michelle Rowland urged senators to pass the bill which she said reflected the Australian community’s view.
“The ... government is on the side of supporting parents and protecting young people,” Rowland told the House.
Once the legislation becomes law, the platforms would have one year to work out how they could implement the ban before penalties are enforced.
The platforms complained that the law would be unworkable, and urged the Senate to delay the vote until at least June next year when a government-commissioned evaluation of age assurance technologies made its report on how young children could be excluded.
Critics argue the government is attempting to convince parents it is protecting their children ahead of general elections due by May. The government hopes that voters will reward it for responding to parents’ concerns about their children’s addiction to social media. Some argue the legislation could cause more harm than it prevents.
Criticisms include that the legislation was rushed through Parliament without adequate scrutiny, is ineffective, poses privacy risks for all users, and undermines parental authority to make decisions for their children.
Opponents of the bill also argue the ban would isolate children, deprive them of the positive aspects of social media, drive them to the dark web, discourage children too young for social media to report harm and reduce incentives for platforms to improve online safety.


Explosions heard in Ukraine’s Odesa, Kropyvnytskyi – media reports

Updated 28 November 2024
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Explosions heard in Ukraine’s Odesa, Kropyvnytskyi – media reports

  • Odesa regional governor Oleh Kiper urged residents to stay in shelter in a message on the Telegram app

Explosions were heard in the Ukrainian Black Sea port city of Odesa and the city of Kropyvnytskyi in central Ukraine on Thursday morning amid reports of a Russian cruise missile attack, Ukrainian news outlet Zerkalo Tyzhnya and other local media reported.
Odesa regional governor Oleh Kiper urged residents to stay in shelter in a message on the Telegram app.