According to Reports from Local Media, on May 7, 2023, the Philippine National Police rescued 1,090 individuals who were trafficked into the country from various Asian countries and coerced or convinced to endorse fraudulent cryptocurrency investments. The operation was led by the Colorful and Leap Group, and at least 12 suspected members of the organization have been detained.
Southeast Asia has become a hub for cryptocurrency fraud activities, with victims promised free flights, lodging, and internet employment. Upon arrival, their passports are confiscated, and they are forced to work for up to 18 hours a day, with pay being deducted for breaks.
Michelle Sabino, a spokesperson for the Philippine National Police’s anti-cybercrime unit, explained how cryptocurrency fraud operations work; she stated that employees are trained to create fake romantic connections with strangers to convince them to buy cryptocurrency assets or make deposits into fake bank accounts.
According to Sabino, the victims of this heinous crime were treated like inmates without cells. They were not even allowed to communicate with their housemates and were prohibited from leaving the perimeter of the gate. After 18 hours of labour, they were taken back to their hostel. It is disheartening to note that these victims were also forced to prey on innocent individuals in Canada, Europe, and the United States.
According to the local media report, the victims were primarily Vietnamese (489), Chinese (307), Filipinos (171), and Indonesians (143). There were also individuals from 40 other nationalities, including 25 from Malaysia, 7 from Myanmar, 5 from Thailand, 2 from Taiwan, and 1 from Hong Kong.
Sabino noted that the police operation was initiated in response to a request for assistance from the Indonesian ambassador in Manila to help locate stranded Indonesian citizens. The Philippine National Police (PNP) assembled a joint squad comprising the Anti-Cybercrime Group, Intelligence Group, and Special Action Force to raid the Colorful and Leap office in the province of Pampanga.
Sabino added that the 12 alleged ringleaders, who were arrested during the raid, will be charged with human trafficking. The group comprises four Indonesians, a Malaysian, and seven Chinese nationals.
CertiK, a blockchain security company, reported in April 2023 that over $300M was lost in Q1 of this year as a result of a number of crypto scam events, with exit scams being responsible for a significant portion of the losses.
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