The Cybercrime Investigation and Coordinating Center (CICC) warned that some sophisticated drug trafficking groups are using cryptocurrency in their operations.
CICC executive director Alexander Ramos said the agency started to investigate drug-related cybercrimes early last year by tracking down the payment system.
“This is the exchange of money. So because of this, we were able to develop a cycle how drug money or drug trade is using cryptocurrency,” he said.
Ramos disclosed that the USDT platform is currently being used in the drug payment. USDT or Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner. It is available on most digital blockchain networks or via interoperable swaps or exchanges.
“Most of those we see are USDT. It’s a platform that they’re using. Of course, they’re using local channels first. Using the wallets, e-wallets before they convert it to crypto,’ he said.
Philippine Drug Enforcement Agency (PDEA) officer-in- charge assistant secretary Renato Gumban said that drug payment used to be from bank to bank, but the money trail has been more difficult in recent years because of the use of cryptocurrency.
“It’s a bit difficult. It needs technology. We need CICC there,” Gumban said as he highlighted the significance of the memorandum of agreement (MOA) with CICC.
Based on the MOA, CICC pledged to provide resources and technical expertise to PDEA representatives/technical liaisons/analysts to facilitate PDEA’s agency linkage/data sharing with agencies relevant to the investigation and prosecution of RA 9165 or the Comprehensive Dangerous Drugs Act of 2002, as amended by RA 10640, and any other relevant laws.