The Cybercrime Investigation and Coordinating Center (CICC) and the Philippine Drug Enforcement Agency (PDEA) have uncovered the use of cryptocurrency in illegal drug transactions.
According to CICC Executive Director Alexander Ramos, the CICC has been monitoring drug-related cybercrimes since early last year, focusing on payment systems.
“This is the exchange of money. So because of this, we were able to develop a cycle of how drug money or drug trade is using cryptocurrency,” he said.
PDEA Officer-in-Charge Assistant Secretary Renato Gumban shared this development during a memorandum of agreement (MOA) signing on Jan. 28 at the National Cybercrime Hub in Bonifacio Global City, Taguig City.
Ramos also revealed that USDT, or Tether, is one of the platforms being used for drug payments. USDT is a blockchain-based platform that allows digital transactions using fiat currency equivalents.
E-wallets
“Most of those we see are USDT. It’s a platform that they’re using. Of course, they’re using local channels first. Using wallets and e-wallets before they convert it to crypto,” Ramos said.
Gumban noted that drug payments were traditionally done through bank transfers. However, tracking the money trail has become more challenging with the rise of cryptocurrency.
“It’s a bit difficult. It needs technology. We need CICC there,” he said, emphasizing the importance of the agency’s partnership with CICC.
Under the MOA, CICC committed to providing resources and technical expertise to assist PDEA in linking with relevant agencies and sharing data for investigations and prosecutions related to drug-related offenses under the Comprehensive Dangerous Drugs Act of 2002, as amended by RA 10640.