Reporting Crypto Scams in the Philippines

I. Nature of Crypto Scams in the Philippine Context

Cryptocurrency-related fraud has surged in the Philippines alongside the rapid adoption of digital assets. Common schemes include:

  • Investment scams promising guaranteed high returns (e.g., “hyper-funded” platforms, fake trading bots, cloud mining schemes)
  • Ponzi and pyramid schemes disguised as DeFi yield farming or staking programs
  • Romance scams that eventually pivot to cryptocurrency investment
  • Fake initial coin offerings (ICOs), airdrops, or token presales
  • Impersonation of legitimate local exchanges or international platforms
  • Rug pulls by local “crypto projects” or influencers
  • SIM-swap attacks leading to wallet drainage
  • Phishing through fake apps, Telegram groups, or Discord servers

Most of these schemes violate multiple Philippine laws even if the perpetrators are abroad.

II. Principal Laws and Issuances Governing Cryptocurrency and Fraud

  1. Republic Act No. 10175 (Cybercrime Prevention Act of 2012)

    • Sections 4(a)(1) and 6: Computer-related fraud and illegal access
    • Section 4(c)(1): Cyber-squatting and phishing using fake websites or apps
    • Section 8: Penalties are one degree higher than the Revised Penal Code offense

  2. Republic Act No. 9160 (Anti-Money Laundering Act of 2001), as amended by RA 9194, RA 10167, RA 10365, and RA 10927

    • Virtual asset service providers (VASPs) such as exchanges and wallet providers are covered entities required to register with the BSP and implement AML/CFT controls
    • Failure to report suspicious transactions is punishable

  3. Revised Penal Code (Act No. 3815)

    • Article 315: Estafa (swindling) through false pretenses or fraudulent representation
    • Article 171-172: Falsification by private individuals and use of falsified documents (common in fake whitepapers or forged BSP/SEC licenses)
    • Article 184: Offering false testimony or perjured affidavits (used in some recovery scams)

  4. Republic Act No. 8792 (Electronic Commerce Act of 2000)

    • Recognizes electronic documents and signatures; used to prove chat logs, emails, and wallet transactions

  5. Republic Act No. 10173 (Data Privacy Act of 2012)

    • Relevant when scammers misuse personal data or when victims’ KYC documents are leaked

  6. Bangko Sentral ng Pilipinas (BSP) Regulations

    • Circular No. 944 (2017) and Circular No. 1108 (2021): Guidelines on Virtual Currency Operations
    • Only BSP-registered Virtual Asset Service Providers (VASPs) may legally facilitate conversion of crypto to fiat in the Philippines
    • Unregistered entities (most scam platforms) are operating illegally

  7. Securities and Exchange Commission (SEC) Advisories

    • SEC has issued hundreds of public advisories declaring specific platforms (e.g., Forsage, OmegaPro, JuanHand, MetaPro, etc.) as unregistered and operating as Ponzi schemes
    • Operating an unregistered investment scheme violates Section 8 and Section 28 of the Securities Regulation Code (RA 8799)

III. Where and How to Report Crypto Scams

A victim has several reporting avenues. Filing in multiple agencies is recommended because each has different investigative powers.

1. National Bureau of Investigation – Cybercrime Division (NBI-CCD)

  • Primary agency for cyber-enabled estafa and large-scale investment scams
  • Location: NBI Main Office, Taft Avenue, Manila, or any regional office
  • Required documents:
    • Sworn affidavit/complaint
    • Screenshots of chats, transactions, websites
    • Wallet addresses and transaction hashes (TXIDs)
    • Proof of payment (GCash, bank transfer receipts, etc.)
  • NBI can issue subpoenas to local banks and remittance centers and coordinate with foreign law enforcement via Interpol

2. Philippine National Police – Anti-Cybercrime Group (PNP-ACG)

  • Best for immediate response and preservation of evidence
  • Hotline: 723-0401 loc. 5490 / 0917-708-6080
  • Can conduct entrapment operations if scammers are still actively soliciting

3. Securities and Exchange Commission (SEC)

  • File via the SEC eSPARC platform (https://esparc.sec.gov.ph/)
  • Ideal for investment scams and unregistered securities offerings
  • SEC can issue Cease and Desist Orders (CDOs) and file syndicated estafa cases

4. Bangko Sentral ng Pilipinas (BSP)

5. Anti-Money Laundering Council (AMLC)

  • File a Suspicious Transaction Report (STR) if the amount involved is large
  • Victims may request AMLC assistance in freezing bank accounts or wallets through a court order

6. Department of Justice – Office of Cybercrime (DOJ-OOC)

  • For preliminary investigation and inquest in serious cases

7. Local Prosecutor’s Office / Municipal Trial Court

  • File a criminal complaint for estafa directly (private crime) if the amount is below PHP 2 million and the suspect is identifiable

IV. Practical Steps Immediately After Discovering the Scam

  1. Preserve all evidence (screenshots, chat logs, transaction hashes, wallet addresses, URLs)
  2. Secure remaining accounts (enable 2FA, move funds to new wallets, change passwords)
  3. Report the scam wallet addresses to local exchanges (Coins.ph, PDAX, BloomX, etc.) so they can blacklist them
  4. File a report with the blockchain analytics platforms:
  5. If funds went through a BSP-registered VASP, demand a hold or freeze from the exchange’s compliance officer

V. Recovery Possibilities

Realistic recovery rate is extremely low (<5 data-preserve-html-node="true" %) once funds are moved to non-custodial wallets or mixed through tumblers, but the following avenues exist:

  1. Court-ordered bank account freeze (via AMLC or civil case for provisional remedy)
  2. Filing of civil case for sum of money with prayer for preliminary attachment
  3. Cooperation with foreign law enforcement if the scammer’s exchange is in a cooperative jurisdiction (Singapore, Hong Kong, UAE, etc.)
  4. Class-action suits (rare but increasing; example: Forsage victims’ group)

VI. Preventive Measures and BSP/SEC-Approved Platforms

Only deal with BSP-registered VASPs (as of 2025):

  • Coins.ph
  • PDAX
  • Maya Philippines (formerly PayMaya)
  • BloomX
  • Bitbit (Cash PHP)
  • Betur (Cebuana Lhuillier)
  • Rebit.ph
  • Abi Global Philippines, etc.

Check the official BSP list here: https://www.bsp.gov.ph/Pages/Directories/ListOfRegisteredVASPs.aspx

VII. Penalties Faced by Scammers (If Caught)

  • Syndicated estafa (SEC cases): Reclusion perpetua (life imprisonment)
  • Simple estafa: Prision correccional to prision mayor (6 months to 20 years depending on amount)
  • Cybercrime law aggravation: Penalty one degree higher
  • AMLA violations (for money mules): 7–14 years imprisonment + fine up to three times the laundered amount

VIII. Conclusion

Crypto scams in the Philippines are prosecuted primarily as estafa, syndicated estafa, or violations of the Securities Regulation Code and the Cybercrime Prevention Act. Victims must act quickly to preserve evidence and file complaints with the NBI Cybercrime Division, PNP-ACG, and SEC simultaneously. While recovery is difficult, successful investigation and prosecution have increased since 2022, particularly in high-profile cases coordinated with the DOJ Task Force on Online Scams.

Reporting every incident, no matter how small, contributes to the government’s growing database and improves the chances of dismantling scam networks operating within and outside the country.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.

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