Philippine Police Arrested 277 Chinese Nationals for Running Crypto Scam
September 23, 2019
Philippine Police Arrested 277 Chinese Nationals for Running Crypto Scam
September 23, 2019

Philippine Police have reportedly raided the offices of Grapefruit Services Inc, which was suspected of running a cryptocurrency scam, and arrested 277 Chinese Nationals involved in the alleged scheme. The information about the scam was reported to the Philippine police by the Chinese Embassy.

It has been reported that according to the embassy, the firm was suspected of an investment scam that had affected “thousands of Chinese citizens” and China has abolished the passports of the company’s workers. As a result, the Grapefruit employees have been declared illegal workers. 

Illicit Activities under CEZA License 

Grapefruit Services Inc is a service provider authorized by ‘The Golden Millennial Quickpay’, a cryptocurrency firm, which was allegedly registered for the project under a special license accepted by the Cagayan Economic Zone Authority (CEZA), as reported by a local news outlet

Instead of being a CEZA-registered project, Grapefruit operated outside of the Cagayan Special Economic Zone (CEZA) and Freeport, where it is licensed to conduct business. 

Philippine Police

The case has expressed the Philippine Bureau of Immigration to closely check the operations of other companies with Chinese workers advocating overseas entities that provide cryptocurrency and other financial products.

ALSO READ :  David Marcus Says China Will Create A Digital Currency If US Rejects Libra

Making Preparations for Cryptocurrency

Earlier this year, the Philippine Securities and Exchange Commission (PSEC) postponed the issuance of official regulations concerning initial coin offerings (ICO), although the draft bill has been proposed since August 2018. 

However, the PSEC asserted in the draft that the tokens emitted during an ICO be classified as securities and therefore “should be registered with the Commission and necessary disclosures need to be made for the protection of the investing public.”


Crypto News Point a news platform of Digital Notice Media Labs is a regular publication of information, analysis, and commentary focused primarily on blockchain technology and business, cryptocurrency, blockchain-based tokens, market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any security.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

You May Also like

Ishita Bora

Ishita Bora is a content creator at Digital Notice Media Labs. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. She is an archetypal writer, who loves to create her own little world with words and locutions. Apart from this, her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.
Share This

Share This

Share this post with your friends!