Authorities swooped on a gaming technology establishment in Bamban town, Tarlac province on Wednesday (Feb. 1) for an allegedly fraudulent cryptocurrency investment operation. (Photo courtesy of CIDG)
MABALACAT CITY, Pampanga—Operatives of the Criminal Investigation and Detection Group-Central Luzon raided a big gaming technology establishment in Bamban town, Tarlac province, on Wednesday (Feb. 1) for an allegedly fraudulent cryptocurrency investment operation.
In a report, the CIDG-3 said it arrested a Malaysian national identified as Chai Kiat Chiw and held the 800 employees of Hongsheng Gaming Technology, Inc., which included 350 foreigners and 500 Filipinos.
The law enforcement agency said the raid was based on a warrant to search, seize and examine computer data for alleged violations of the Securities Regulations Code of the Philippines’ provisions on fraudulent transactions and of the Cybercrime Prevention Act of 2012.
It said the warrant was issued by Judge Maria Roma Flor Ortiz of the Tarlac Regional Trial Court Branch 63 on Jan. 31 this year for the alleged operation of a cryptocurrency investment scam.
CIDG-3 said the serving and implementation of the warrant were made at the company’s premises in Anupul village around 5 p.m. on Wednesday.
It said three other officers of the company—Yu Zheng Can, Zhiyang Huang and Thelma Larnan—remained at large.
The operation was conducted with other police units and the local police.
“As a backgrounder, Hong Sheng Gaming Technology Inc. allegedly operates fraudulent cryptocurrency investment scams shielded under the cloak of a permitted or licensed offshore gaming operation,” the CIDG-3 stated in its report.
On Dept. 16, 2020, the municipal council of Bamban allowed Hongsheng Gaming Technology, Inc. to establish and operate a “business of amusement, entertainment, recreation and gaming activities” in the town, “provided that the gaming activities conducted therein shall be exclusive only to their members and their community.”
The council stated in its resolution that Hongsheng had stated that it is registered with the Securities and Exchange Commission “although no copy of its registration was provided” to the local legislative body.
Hongsheng is among the Philippine Offshore Gaming Operators or POGO licensed by the Philippine Amusement and Gaming Corp. to operate in the country.
On its website, Pagcor listed Hongsheng as among the 22 POGOs with canceled licenses to operate as of Oct. 6, 2022.
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