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

COAI Experiences Significant Price Decline and Its Impact on the Market

- COAI index plummeted 88% YTD in 2025 due to governance failures, regulatory uncertainty, and speculative trading. - C3.ai leadership issues and CLARITY Act triggered sector-wide selloffs, while 88% token concentration enabled market manipulation. - AI-generated disinformation accelerated panic selling, exposing systemic risks in AI-driven crypto ecosystems. - Investors now prioritize diversified portfolios, transparent governance, and blockchain verification tools to mitigate AI-era risks. - Alternative

Bitget-RWA2025/12/08 14:50
COAI Experiences Significant Price Decline and Its Impact on the Market

The Emergence of Hyperliquid (HYPE): Unveiling the Driving Force Behind Its Latest Price Rally

- Hyperliquid's HYPE token surged to $37.54 in Nov 2025 via DeFi 2.0 upgrades and regulatory alignment, but later retreated to $30–$31 amid unlocking pressures. - Institutional staking (425,000 HYPE) and 11% HLP yields boosted TVL to $5B, creating a "liquidity flywheel" while aligning with CLARITY Act/MiCA compliance frameworks. - November's 23.8% token unlock ($11.9B potential liquidity) triggered $2.2M team sales and 23.4% OTC dumping, weakening HYPE's price stability despite 40% re-staking. - Buybacks a

Bitget-RWA2025/12/08 14:50
The Emergence of Hyperliquid (HYPE): Unveiling the Driving Force Behind Its Latest Price Rally

The Influence of Evolving Academic Research on Industries Powered by STEM

- Global STEM education investments strongly correlate with tech sector growth, boosting employment and innovation in computing, engineering, and advanced manufacturing. - U.S. STEM funding cuts risk lagging behind China in talent pipelines, while OECD data links higher STEM graduates per capita to increased GDP per capita. - Educational R&D innovations like AI-integrated programs show 20-75% operational efficiency gains, mirroring tech industry productivity demands. - Persistent challenges include 411,500

Bitget-RWA2025/12/08 14:32
The Influence of Evolving Academic Research on Industries Powered by STEM
© 2025 Bitget