Gold99 | Senators Urge President Marcos Jr. to Halt Philippine Online Gambling Amid Trafficking Suspicions
In Manila, two Filipino senators are urging President Ferdinand Marcos Jr. to impose a ban on online gambling enterprises in the Philippines. This call comes in the wake of a recent raid on a licensed offshore gaming operator, suspected to be connected to a significant human trafficking scheme.
During the operation on June 27, local law enforcement rescued nearly 3,000 individuals, including at least four Singaporeans, from the premises of Xinchuang Network Technology Inc in Las Pinas City, situated south of the capital Manila.
Xinchuang, a licensed Philippine offshore gaming operator (Pogo), is under suspicion by authorities who believe its online gambling activities serve as a facade for alleged cryptocurrency and love scams exploiting victims of human trafficking. Xinchuang vehemently denies these allegations.
Senator Hontiveros Advocates Immediate Pogo Ban, Highlighting Financial and Criminal Concerns
In a statement to The Straits Times, Senator Risa Hontiveros emphatically declared, “Marcos should ban Pogos now. Not only have Pogos made our country a playground for their criminal activities, they also owe our government money in billions of unpaid taxes.”
Since the latter part of 2022, Senators Hontiveros and Win Gatchalian have been at the forefront of a Senate investigation into hubs orchestrating cryptocurrency scams across Southeast Asian nations, including Cambodia and Myanmar. These hubs have been deceiving migrant Filipino workers into participating in fraudulent activities.
The senators subsequently uncovered evidence that such deceptive operations have infiltrated the Philippines as well.
In May, they discovered that Sun Valley Hub, a registered Pogo, was conducting a cryptocurrency scam hub within the Clark Freeport Zone in Pampanga, a province located north of Manila. An official from the free port zone later acknowledged that this incident was indeed a “failure of intelligence.”
Senators Uncover Disturbing Tactics in Cryptocurrency Scams Linked to Pogos
Victims, initially recruited through social media for call center or Pogo positions, found themselves ensnared in a cryptocurrency scheme orchestrated by a purported “Chinese mafia,” according to Ms. Hontiveros. Upon reaching their destination, victims were coerced into working for this criminal network.
The victims underwent training to craft fake social media profiles, using stolen photos of accomplished young women. Their task was to engage in online romantic relationships on various platforms, convincing their male targets to invest in cryptocurrency.
Senators Hontiveros and Gatchalian noted striking similarities in the operations of Xinchuang and Sun Valley Hub.
Expressing further concern, Mr. Gatchalian highlighted the apparent lack of awareness by the Philippine Amusement and Gaming Corporation, responsible for Pogo licenses, regarding these illicit activities. He emphasized the urgency of addressing Pogos as a societal scourge, particularly given Xinchuang Network Technology Inc’s previous involvement in criminal activities.
Legal Battles and Controversies Surrounding Xinchuang Unfold as Charges Emerge
Last Friday saw the filing of human trafficking and cybercrime charges against five Chinese nationals employed by Xinchuang. Despite vehement denials from the company’s legal counsel, Christian Vargas, asserting the legality and proper documentation of their work, the legal battle intensifies.
“How can there be human trafficking when they are working legally and they’re very well-documented? We deny those charges. That is not true,” stated Vargas in response to reporters’ inquiries.
While the 1,190 foreign nationals rescued during the raid remain within Xinchuang’s compound, investigations into their potential involvement in the cryptocurrency scam are ongoing. Non-suspect foreigners are slated for repatriation.
Singapore Ambassador to Manila, Constance See, reported that the Singaporeans among the rescued individuals are currently under police custody, with the embassy closely collaborating with local authorities. Limited details about the Singaporeans have been disclosed at this time.
The introduction of Pogos to the Philippines in November 2016, sanctioned by former president Rodrigo Duterte, has been marked by controversy. In 2019, China called for the cessation of all online gambling operations in the Philippines, citing links to crimes such as money laundering, kidnapping, and extortion.
Despite these concerns, the Philippine government persists in granting licenses to Pogos, contributing approximately 53.1 billion pesos (S$1.3 billion) to the economy in 2022.
