The Cybercrime Investigation and Coordinating Center (CICC) and the Philippine Drug Enforcement Agency (PDEA) have disclosed the use of cryptocurrency in the sophisticated drug trade.
CICC Executive Director Alexander K. Ramos and PDEA Officer-in-Charge Assistant Secretary Renato Gumban revealed this development during the signing of the memorandum of agreement between the two agencies on Jan. 28 at the National Cybercrime Hub in Bonifacio Global City Taguig City. Also present were Ret. PGen. Sotero Ramos, CICC Highly Technical Consultant and PDEA Director Francis Del Valle ( Legal and Prosecution Service).
Ramos said that CICC started to be involved in 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 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.
Gumban said that drug payment used to be from bank to bank. However in recent years, the money trail has been more difficult 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 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.
Issued by the Office of Executive Director Alexander K. Ramos
