Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Philippines Flood Control Scandal Linked to Crypto Laundering Operations

Philippines Flood Control Scandal Linked to Crypto Laundering Operations

CryptonewslandCryptonewsland2025/12/07 16:24
By:by Wesley Munene
  • Investigators connect flood control corruption funds to cryptocurrency laundering through Tether (USDT).
  • Pogo-linked syndicates are suspected of using digital assets to obscure illicit financial transactions.
  • The Philippine Anti-Money Laundering Council is focusing on crypto exchanges to curb illicit fund flows.

Investigators in the Philippines have discovered a link between the country’s massive flood control corruption scandal and cryptocurrency laundering schemes. Funds meant for flood control projects were allegedly funneled into cryptocurrency exchanges. The money trail appears to involve individuals connected to Philippine offshore gaming operators (Pogos) banned by the government last year.

According to a report by South China Morning Post, cybercrime authorities have reported finding digital assets tied to the flood control scandal linked to cryptocurrency scams. These funds were converted into digital assets, including Tether (USDT), a popular stablecoin. Investigators revealed that large sums of money, ranging from 50 million to 100 million pesos, were being moved into digital currencies.

Tether Used for Laundering Corrupt Funds

The use of Tether in the flood control scandal comes as no surprise. Tether (USDT) is widely used across Southeast Asia for crypto transactions. Luis Buenaventura, head of crypto at GCash, explained that USDT’s liquidity makes it ideal for large-scale transactions in the region.

Tether transactions in the Philippines have become a common method for laundering illicit funds. Investigators found that the funds linked to the corruption scandal were being funneled through multiple accounts. These accounts are believed to be operated by Pogo-linked syndicates, which have been involved in various illegal activities.

The Philippine Anti-Money Laundering Council has frozen accounts linked to these transactions. The council has focused on Tether and other digital currencies, highlighting their role in money laundering schemes. Renato Paraiso, acting executive director of the Cybercrime Investigation and Coordinating Centre, stated, “There’s a definite link between these transactions and the people involved in the corruption scandal.”

Crypto Channels Used for Corruption and Criminal Activities

Authorities have found that digital currencies are being increasingly used for illegal purposes. Cryptocurrency transactions have become the preferred method for laundering funds linked to crimes such as kidnapping and drug trafficking. Paraiso noted that launderers have been routing the money through various wallets and exchanges to obscure the trail.

Investigators also believe that casino junket operators are playing a role in the laundering process. Public works officials tied to the flood control corruption scheme have reportedly used casinos to convert their kickbacks into cryptocurrency. After cashing out the casino chips, the proceeds were deposited as winnings.

The trending use of cryptocurrencies for transferring illicit funds is presented through these methods. The situation is still under the watchful eyes of the authorities, but the non-regulation in the Philippines makes it hard to follow all the transactions. The crypto market in the country is still governed by loose regulations, which is a plus for criminals as they can take advantage of the system’s weaknesses.

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Regulatory Changes in U.S. Agriculture: The Impact of USDA Policy Decisions on Long-Term Investments in Livestock and Poultry Industries

- USDA’s 2023–2025 Organic Livestock and Poultry Standards (OLPS) impose stricter animal welfare rules, with phased compliance until 2029 to ease small producers’ adjustments. - Compliance costs for organic producers are high initially but projected to yield $59.1–$78.1 million annual benefits via enhanced consumer trust and premium pricing. - Investors favor scalable, tech-driven operations amid OLPS-driven capital shifts, though small producers face compliance challenges and market exit risks in poultry

Bitget-RWA2025/12/13 04:20
Regulatory Changes in U.S. Agriculture: The Impact of USDA Policy Decisions on Long-Term Investments in Livestock and Poultry Industries

ZK Atlas Enhancement: Marking a Milestone for Scalable Blockchain Frameworks

- ZKsync's 2025 Atlas Upgrade revolutionizes blockchain with 43,000 TPS, $0.0001 per-transaction costs, and sub-second finality via Airbender zkVM. - Modular EVM compatibility attracts Deutsche Bank , Sony , and $15B institutional investment, accelerating DeFi, NFTs, and cross-border payments. - ZK rollups' TVL surges to $28B, with 60.7% CAGR projected through 2031, driven by Bitcoin ETF inflows and $7.59B ZKP market growth by 2033. - Regulatory clarity under U.S. GENIUS Act and EU MiCA accelerates adoptio

Bitget-RWA2025/12/13 03:46
ZK Atlas Enhancement: Marking a Milestone for Scalable Blockchain Frameworks

ZK (Zero-Knowledge) Technology and Its Rapidly Growing Market Attention

- Zero-knowledge (ZK) technology is revolutionizing blockchain and fintech by enabling scalable, private, and compliant systems, with the ZKP market projected to grow from $1.535B in 2025 to $7.585B by 2033 at 22.1% CAGR. - Institutional adoption by firms like Goldman Sachs , Walmart , and HSBC highlights ZK's role in confidential transactions and supply chain transparency, supported by regulatory frameworks like the U.S. GENIUS Act and EU MiCA. - Enterprise platforms (Quorum, Hyperledger Fabric-X) and inn

Bitget-RWA2025/12/13 03:46
ZK (Zero-Knowledge) Technology and Its Rapidly Growing Market Attention
© 2025 Bitget