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.


UK’s Met Police refers itself to watchdog over Al-Fayed probes

Updated 5 sec ago
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UK’s Met Police refers itself to watchdog over Al-Fayed probes

LONDON: The UK’s Metropolitan Police on Friday referred itself to the police watchdog following complaints from two women over its handling of investigations into alleged sexual abuse by late Harrods owner Mohamed Al-Fayed.
The complaints, referred to the Independent Office for Police Conduct (IOPC), involve investigations from 2008 and 2013.
They revolve around the quality of the police response and, in the case of the 2013 probe, how details came to be disclosed publicly.
“In recent weeks, two victims-survivors have come forward with concerns about how their allegations were handled when first reported, and it is only appropriate that the IOPC assess these complaints,” said Stephen Clayman, from the Met’s Specialist Crime team.
“Although we cannot change the past, we are resolute in our goal to offer every individual who contacts us the highest standard of service and support,” he added.
More than 400 women and witnesses have come forward in the past six weeks alleging sexual misconduct by Fayed, who died in August last year aged 94.
The allegations follow the airing of a BBC documentary in September that detailed multiple claims of rape and sexual assault by the former owner of the upmarket London department store.
The Justice for Harrods Survivors group said it had received 421 inquiries, mainly related to the store but also regarding Fulham football club, the Ritz Hotel in Paris and other Fayed entities.
The Met said Friday that it was “actively reviewing 21 allegations reported to the Metropolitan Police prior to Mohamed Al-Fayed’s passing... to determine if any additional investigative steps are available or there are things we could have done better.”

India’s Naga separatists threaten to resume violence after decades-long truce

Updated 46 min 2 sec ago
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India’s Naga separatists threaten to resume violence after decades-long truce

  • “The violent confrontation between India and Nagalim shall be purely on account of the deliberate betrayal and breach of commitment by India and its leadership to honor the letter and spirit of Framework Agreement of 2015,” he said

GUWAHATI, India: An armed separatist group in a remote northeast Indian state on Friday threatened to “resume violent armed resistance” after nearly three decades of ceasefire, accusing New Delhi of failing to honor promises in earlier agreements.
The Naga insurgency, India’s oldest, is aimed at creating a separate homeland of Nagalim that unites parts of India’s mountainous northeast with areas of neighboring Myanmar for ethnic Naga people. About 20,000 people have died in the conflict since it began in 1947.
A ceasefire between the National Socialist Council of Nagaland (Isak-Muivah), a leading separatist group, and Indian security forces has held since it was enforced in 1997 and the group signed an agreement with New Delhi in 2015 toward striking a resolution on their demands.

BACKGROUND

A ceasefire between the National Socialist Council of Nagaland (Isak-Muivah), a leading separatist group, and Indian security forces has held since it was enforced in 1997.

But talks have stagnated since and in a statement Friday, the group’s chief, Thuingaleng Muivah, accused India of “betrayal of the letter and spirit” of the 2015 agreement.
India’s Interior Ministry did not immediately respond to a request for comment on Muivah’s remarks.
In a statement, Muivah urged Prime Minister Narendra Modi’s federal government to “respect and honor” the 2015 agreement, which he said “officially recognized and acknowledged” the right to a sovereign flag and constitution for the separatists.
Muivah proposed a “third party intervention” to resolve the impasse, threatening that it would resume violence if “such a political initiative was rejected.”
“The violent confrontation between India and Nagalim shall be purely on account of the deliberate betrayal and breach of commitment by India and its leadership to honor the letter and spirit of Framework Agreement of 2015,” he said.
“India and its leadership shall be held responsible for the catastrophic and adverse situation that will arise out of the violent armed conflict between India and Nagalim,” he said.

 


Comoros arrests suspected key smuggler

Comoros Police officers and Comoros soldiers patrol in Moroni on January 17, 2024. (AFP)
Updated 08 November 2024
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Comoros arrests suspected key smuggler

  • The International Organization for Migration said on Monday that at least 25 people died after the boat was “deliberately capsized by traffickers”

MORONI, Comoros: Police in the Comoros said on Friday they had arrested the alleged leader of a smuggling network involved in the capsizing of a migrant boat that claimed around two dozen lives.
The boat sank on a well-known smuggling route between the Comoros island of Anjouan and the French Indian Ocean archipelago of Mayotte on Nov. 1.
“The smuggling ringleader who owned the capsized boat was arrested on Thursday in Anjouan,” Col. Tachfine Ahmed said.
“He admitted that he owned the boat and bought all the material needed for the trip,” he added, saying the 37-year-old suspect was a resident of Mayotte.
The International Organization for Migration said on Monday that at least 25 people died after the boat was “deliberately capsized by traffickers.”
The Comoros police said they knew of 17 deaths.
Fishermen rescued five survivors who said the boat was carrying around 30 people, including women and young children, the IOM said.
A survivor said the smugglers sank the vessel before fleeing on a speedboat.
Police confirmed the survivor’s account, saying the two smugglers escaped.
“We are actively looking for the two smugglers who got on another boat,” the colonel added.
In addition to homicide charges, the arrested suspect faces up to 10 years imprisonment for belonging to an organized criminal group as well as three years for illegal transport of passengers.
Anjouan is one of three islands in the nation of Comoros, located around 70 km northwest of Mayotte, which became a department of France in 2011.
Despite being France’s poorest department, Mayotte has French infrastructure and welfare, which makes it attractive to migrants from Comoros seeking a better life.
Many pay smugglers to make the dangerous sea crossing in rickety fishing boats known as “kwassa-kwassa.”

 


UK court awards Manchester bomb victims £45,000 over hoax claims

Updated 08 November 2024
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UK court awards Manchester bomb victims £45,000 over hoax claims

  • Martin Hibbert and his daughter Eve sued Richard Hall over claims made in videos and a book that they were “crisis actors“
  • Judge Karen Steyn called Hall’s behavior “a negligent, indeed reckless, abuse of media freedom”

LONDON: Two survivors of the 2017 bomb attack at an Ariana Grande concert in Manchester, England, on Friday won £45,000 ($58,000) in damages from a former TV producer who claimed the attack was a hoax.
Martin Hibbert and his daughter Eve sued Richard Hall over claims made in videos and a book that they were “crisis actors” employed by the state as part of an elaborate deception.
Hibbert sustained a spinal cord injury in the attack, and his daughter suffered severe brain damage.
Hall argued that he was acting in the public interest by filming Hibbert’s daughter outside her home, but the High Court in London agreed with Hibbert’s claim for harassment.
Judge Karen Steyn called Hall’s behavior “a negligent, indeed reckless, abuse of media freedom” and on Friday ordered him to pay Hibbert and his daughter each £22,500 in damages.
Hall must also pay 90 percent of their legal costs, currently estimated at £260,000.
“The claimants are both vulnerable. The allegations are serious and distressing,” said the judge.
Jonathan Price, lawyer for the claimants, said that Hall “insisted that the terrorist attack in which the claimants were catastrophically injured did not happen and that the claimants were participants or ‘crisis actors’ in a state-orchestrated hoax, who had repeatedly, publicly and egregiously lied to the public for monetary gain.”
Hibbert welcomed the ruling, adding: “I want this case to open up the door for change, and for it to protect others from what we have been put through.
“It proves and has highlighted... that there is protection within the law, and it sends out a message to conspiracy theorists that you cannot ignore all acceptable evidence and harass innocent people.”
Islamic extremist Salman Abedi, aided by his brother, Hashem Abedi, killed 22 people and injured 1,017 during the suicide bombing at the end of the concert by the US singer.


US charges Iranian man in plot to kill Donald Trump

Updated 08 November 2024
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US charges Iranian man in plot to kill Donald Trump

  • Shakeri told the FBI he didn’t plan to propose a plan to murder Trump
  • The plot reflects what federal officials have described as ongoing efforts by Iran to target US government officials

WASHINGTON: The Justice Department on Friday disclosed an Iranian murder-for-hire plot to kill Donald Trump, charging a man who said he had been tasked by a government official before this week’s election with assassinating the Republican president-elect.
Investigators learned of the plot to kill Trump while interviewing Farhad Shakeri, an Afghan national identified by officials as an Iranian government asset who was deported from the US after being imprisoned on robbery charges.
He told investigators that a contact in Iran’s paramilitary Revolutionary Guard instructed him this past September to put together a plan within seven days to surveil and ultimately kill Trump, according to a criminal complaint unsealed in federal court in Manhattan.

Two other men who the authorities say were recruited to participate in other assassinations, including a prominent Iranian American journalist, were also arrested Friday. Shakeri remains in Iran.
“There are few actors in the world that pose as grave a threat to the national security of the United States as does Iran,” Attorney General Merrick B. Garland said in a statement.
The plot, with the charges unsealed just days after Trump’s defeat of Democrat Kamala Harris, reflects what federal officials have described as ongoing efforts by Iran to target US government officials, including Trump, on US soil. Last summer, the Justice Department charged a Pakistani man with ties to Iran in a murder-for-hire plot.