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.


Official count shows Widodo reelected as Indonesian leader

Updated 21 May 2019
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Official count shows Widodo reelected as Indonesian leader

  • Widodo’s challenger for a second time, former general Prabowo Subianto, has refused to accept defeat and declared himself the winner last month
  • Police this month have arrested 31 Islamic militants they say planned to set off bombs during expected street protests against the election result
JAKARTA, Indonesia: The official count from last month’s Indonesian presidential election shows President Joko Widodo won 55.5% of the vote, the Election Commission said Tuesday, securing him a second term.
The formal result from the April 17 election was almost the same as the preliminary “quick count” results drawn from a sample of polling stations on election day.
Widodo’s challenger for a second time, former general Prabowo Subianto, has refused to accept defeat and declared himself the winner last month.
Thousands of police and soldiers are on high alert in the capital Jakarta, anticipating protests from Subianto’s supporters.
Subianto has alleged massive election fraud in the world’s third-largest democracy but hasn’t provided any credible evidence. Votes are counted publicly and the commission posts the tabulation form from each polling station on its website, allowing for independent verification.
Counting was completed just before midnight and the Election Commission announced the results early Tuesday before official witnesses from both campaigns.
“We reject the results of the presidential election,” said Azis Subekti, one of the witnesses for Subianto. “This refusal is a moral responsibility for us to not give up the fight against injustice, fraud, arbitrariness, lies, and any actions that will harm democracy.”
Under Indonesia’s election law, Subianto can dispute the results at the Constitutional Court.
He and members of his campaign team have said they will mobilize “people power” for days of street protests rather than appeal to the court because they don’t believe it will provide justice.
In a video released after results were announced, Subianto again refused to concede defeat but called on supporters to refrain from violence.
Police this month have arrested 31 Islamic militants they say planned to set off bombs during expected street protests against the election result.