Law enforcement agencies of the Philippines have arrested 277 people involved in another cryptocurrency scam project.
277 people created crypto scams
According to Philippine Inquirer magazine, last week, the country’s authorities arrested 277 Chinese people who worked on the Grapefruit cryptocurrency scam. The Golden Millennial Quickpay cryptocurrency company was allegedly registered for this project in the Kagayan special economic zone of the country. There, they conducted their operations.
According to the sources, the country’s regulator, the Philippine Securities and Exchange Commission, has banned Grapefruit from providing any financial services and working with both fiat money and cryptocurrencies. However, this did not stop the culprits from working for other countries, including China.
China’s authorities suspected the company of an investment scam that had affected "thousands of Chinese citizens" and revoked their passports. As a result, 277 Grapefruit employees lost their visas in the special economic zone. The Philippines arrested them for further extradition to the PRC.
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- According to CipherTrace, crypto thieves stole $4.2 billion in the first 2 quarters of 2019. Most of this amount ($3.1 billion) are scams.
- Armor analytic company claims that hackers have invented a new way to launder money through cryptocurrencies. They buy cryptocurrency from ordinary users for 10% of its price and send the full value of the coins in fiat money to the account of the "customer." It allows the lawbreakers to receive "white money" and "blur" transactions.