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.


Biden: What’s happening in Gaza is not genocide

Updated 14 sec ago
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Biden: What’s happening in Gaza is not genocide

US President Joe Biden strongly defended Israel on Monday, saying Israeli forces are not committing genocide in their military campaign against Hamas militants in Gaza.

“What’s happening in Gaza is not genocide,” Biden said at a Jewish American Heritage Month event at the White House.


Trump trial prosecution rests, closing arguments next week

Updated 44 min 59 sec ago
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Trump trial prosecution rests, closing arguments next week

NEW YORK: Approximately five weeks, 19 witnesses, reams of documents and a dash of salacious testimony later, the prosecution up against Donald Trump rested its case Monday, handing over to the defense before closing arguments set for next week.

The defense called its first witness, the paralegal of Trump lawyer Todd Blanche, to kick off their case that sees the former president accused of covering up hush money payments to a porn star over an alleged encounter that could have derailed his 2016 White House bid.

Monday featured extended quibbling among the legal teams that, along with the upcoming holiday weekend, means closing arguments that the judge had hoped could start Tuesday are now set for next week.

The defense then called lawyer Robert Costello, who was not a potential witness until Cohen testified at length about exchanges with him.

Trump’s team wanted to question him about the credibility of Cohen, who he has assailed in the past.

The door also remains open for Trump to take the stand, a highly risky move.

Experts doubt he will opt to testify — there’s no requirement to — in his criminal trial, the first ever of a former US president, as it would expose him to unnecessary legal jeopardy and forensic cross-examination by prosecutors.

But Blanche has raised the prospect his client could step up as a witness.

On Monday, Blanche finished his third day of questioning Cohen after hours of at times digressive, at other times bruising, exchanges.

Cohen, Trump’s former personal lawyer turned tormentor, recounted last week how he kept Trump informed about $130,000 paid to porn star Stormy Daniels to buy her silence about an alleged affair ahead of the 2016 presidential election.

Trump’s lawyers set out to paint Cohen as a convicted criminal and habitual liar, recalling his time in prison for tax fraud and lying to Congress.

Blanche also probed Cohen’s loyalty to Trump and then to the prosecution, looking to show jurors that the former fixer is self-serving and willing to go to great lengths to accomplish his aims.

Blanche vied to goad Cohen, who has a reputation for a short temper that could have hurt him on the stand — but the witness largely maintained his composure, dulling the questioning at moments by voicing confusion or nonchalance.

Cohen’s story has generally lined up with Daniels and David Pecker, the tabloid boss who said he worked with Trump and Cohen to suppress negative coverage during the Republican’s 2016 White House run.

After Blanche finished with him the prosecution returned for redirect, with prosecutor Susan Hoffinger asking what the whole experience has meant for him.

“My entire life has been turned upside down,” Cohen said, genuine emotion in his voice. “I lost my law license, my financial security... my family’s happiness... just to name a few.”

Trump meanwhile has complained his 2024 election campaign for another White House term is being stymied by the weeks-long court proceedings, which he has to attend every day.

He did so again Monday, complaining to journalists that he’s “not allowed to have anything to do with politics because I’m sitting in a very freezing cold, dark room for the last four weeks. It’s very unfair.”

Branding the case as politicized, a coterie of leading Republicans have stood in the wings behind him as he gives remarks to reporters outside the courtroom.

The growing list includes several lawmakers eyeing Trump’s vice presidential pick, including Ohio Senator JD Vance and North Dakota Governor Doug Burgum.

The defense also hopes to bring in an election campaign finance expert but calling of that witness was under dispute.

The prosecution has voiced opposition, saying only the judge should explain how the law applies.

When the jury begins deliberating, the often juicy testimony will likely linger — but they will also have stacks of documents to consider.

The charges hinge on financial records, and whether falsifying them was done with intent to sway the 2016 presidential vote.


Biden slams ‘outrageous’ ICC bid to arrest Israeli leaders

Updated 20 May 2024
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Biden slams ‘outrageous’ ICC bid to arrest Israeli leaders

WASHINGTON: US President Joe Biden on Monday condemned an “outrageous” request by the International Criminal Court’s prosecutor for an arrest warrant for Israeli Prime Minister Benjamin Netanyahu.

As Washington moved to defend its key ally, Secretary of State Antony Blinken warned that the Hague-based court’s move could harm ceasefire talks to end the Gaza conflict.

ICC Prosecutor Karim Khan is seeking arrest warrants against Netanyahu and Israeli Defense Minister Yoav Gallant, as well as top Hamas leaders, on suspicion of war crimes and crimes against humanity.

“The ICC prosecutor’s application for arrest warrants against Israeli leaders is outrageous” Biden said in a statement.

“And let me be clear: Whatever this prosecutor might imply, there is no equivalence — none — between Israel and Hamas.”

He added that the United States “will always stand with Israel against threats to its security.”

Neither the United States nor Israel is a member of the ICC, which was set up in 2002 as a court of last resort for the world’s worst crimes.

Asked whether Biden backed ICC arrest warrants for Hamas’s leader in Gaza, Yahya Sinwar, and political chief Ismail Haniyeh, White House spokesman John Kirby said “we don’t believe the ICC has jurisdiction in this matter.”

Biden’s expression of support for Netanyahu over the ICC bid comes despite recent tensions over Israel’s war in Gaza in response to Hamas’s October 7 attack.

Washington recently withheld a shipment of bombs to Israel in a bid to it warn off an offensive in the southern city of Rafah.

Blinken said the United States “fundamentally rejects” the ICC prosecutor’s arrest bid.

“We reject the prosecutor’s equivalence of Israel with Hamas. It is shameful,” Blinken said.

Blinken added that “this decision does nothing to help, and could jeopardize, ongoing efforts to reach a ceasefire agreement that would get hostages out and surge humanitarian assistance in.”

US lawmakers were reportedly considering a legislative response punishing the ICC, amid bipartisan fury among Republicans and Democrats.

Republican House Speaker Mike Johnson slammed the court’s “baseless and illegitimate” decision.

He accused Biden of a “pressure campaign” against Israel, saying the country was “fighting a just war for survival.”

Biden faces political pressure on both sides ahead of a November election clash with Donald Trump, with pro-Gaza student protests roiling US campuses while Republicans accuse him of failing to fully back Israel.

The White House has previously refused to comment on whether the US could take retaliatory action including sanctions against the ICC if it targeted Israel.

In 2020, the administration of then-president Donald Trump targeted the ICC with sanctions over its investigation into Afghanistan, but the Biden administration later lifted them.

However Washington’s ambiguous position over the court is reflected by the fact that it has backed the ICC’s attempt to prosecute Russian President Vladimir Putin over the invasion of Ukraine.

Defense Secretary Lloyd Austin said Monday that the United States will keep assisting the ICC on its investigation into alleged war crimes in Ukraine despite denouncing the Israel move.

“Regarding the question of whether or not we will continue to provide support to the ICC with respect to crimes that are committed in Ukraine, yes, we continue that work,” Austin told reporters.


Russia fails in rival UN bid on nuclear, other weapons in space

Updated 20 May 2024
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Russia fails in rival UN bid on nuclear, other weapons in space

UNITED NATIONS: A Russian-drafted United Nations Security Council resolution that called on all countries to prevent “for all time” the placement, threat or use of any weapons in outer space failed on Monday with the 15-member body split over the move.

The draft failed to get the minimum nine votes needed: seven members voted in favor and seven against, while one abstained. A veto can only be cast by the United States, Russia, China, Britain or France if a draft gets at least nine votes.

Russia put forward the text after it vetoed a US-drafted resolution last month that called on countries to prevent an arms race in outer space. The Russian veto prompted the United States to question whether Moscow was hiding something.

“We are here today because Russia seeks to distract global attention from its development of a new satellite carrying a nuclear device,” deputy US Ambassador Robert Wood told the Security Council before the vote.

He also accused Russia of launching a satellite on Thursday into low Earth orbit that the US “assesses is likely a counterspace weapon presumably capable of attacking other satellites in low Earth orbit.”

“Russia deployed this new counterspace weapon into the same orbit as a US government satellite,” said Wood, adding that the May 16 launch followed Russian satellite launches “likely of counterspace systems to low Earth orbit” in 2019 and 2022.

Russia’s UN Ambassador Vassily Nebenzia responded: “I didn’t even fully understand what he was talking about.”

The 1967 Outer Space Treaty already bars signatories – including Russia and the United States – from placing “in orbit around the Earth any objects carrying nuclear weapons or any other kinds of weapons of mass destruction.”

Washington has accused Moscow of developing an anti-satellite nuclear weapon to put in space, an allegation that Russia has denied. Russian President Vladimir Putin has said Moscow was against putting nuclear weapons in space.

Nebenzia said the Russian draft resolution covered both weapons of mass destruction and all forms of other weapons and was aimed at stopping an arms race in outer space.

But, when pressed by Nebenzia, Wood took issue with language in the draft seeking “a lengthy binding mechanism that cannot be verified,” saying, “I’ve seen this movie before.”

The Russian draft had language echoing a 2008 proposal by Moscow and Beijing for a treaty banning “any weapons in outer space” and threats “or use of force against outer space objects,” but the diplomatic effort did not find international support. 


Amal Clooney advised ICC prosecutor who seeks warrants in Israel-Hamas war crimes case

British Lebanese human rights lawyer Amal Clooney. (File/AFP)
Updated 20 May 2024
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Amal Clooney advised ICC prosecutor who seeks warrants in Israel-Hamas war crimes case

  • British Lebanese human rights lawyer says she agreed to serve on panel of experts reviewing evidence because she believes in rule of law and ‘need to protect civilian lives’

LONDON: British Lebanese human rights lawyer Amal Clooney was a special adviser in the International Criminal Court investigation that resulted in the prosecutor in the case requesting arrest warrants on Monday for Israel’s prime minister, Benjamin Netanyahu, and three Hamas leaders.

The ICC’s chief prosecutor, Karim Khan, thanked Clooney in his statement announcing his decision, describing her as part of “a panel of experts in international law” who reviewed the evidence.

In a message on her foundation’s website, Clooney said Khan had requested that she assist him “with evaluating evidence of suspected war crimes and crimes against humanity in Israel and Gaza.”

She added: “I agreed and joined a panel of international legal experts to undertake this task. Together we have engaged in an extensive process of evidence review and legal analysis, including at the International Criminal Court in The Hague.

“Despite our diverse personal backgrounds, our legal findings are unanimous. We have unanimously determined that the Court has jurisdiction over crimes committed in Palestine and by Palestinian nationals.

“We unanimously conclude that there are reasonable grounds to believe that Hamas leaders Yahya Sinwar, Mohammed Deif and Ismail Haniyeh have committed war crimes and crimes against humanity, including hostage-taking, murder and crimes of sexual violence.

“We unanimously conclude that there are reasonable grounds to believe that Israeli Prime Minister Benjamin Netanyahu and Israeli Defense Minister Yoav Gallant have committed war crimes and crimes against humanity, including starvation as a method of warfare, murder, persecution and extermination.”

Clooney previously faced criticism for failing to publicly criticize the war in Gaza. Many people sent messages to her on social media on Monday apologizing for their comments and praising her role in the ICC investigation.

The lawyer said she agreed to serve on the panel because she believes in the rule of law and the “need to protect civilian lives.”

She added: “The law that protects civilians in war was developed more than 100 years ago and it applies in every country in the world, regardless of the reasons for a conflict.

“As a human rights lawyer, I will never accept that one child’s life has less value than another’s. I do not accept that any conflict should be beyond the reach of the law, nor that any perpetrator should be above the law. So I support the historic step that the prosecutor of the International Criminal Court has taken to bring justice to victims of atrocities in Israel and Palestine.”

Israeli and Hamas leaders have rejected allegations that they are guilty of war crimes, and representatives of both sides criticized Khan for his decision.