DOJ starts probe of P900-million bitcoin scam

MANILA, Philippines — The Department of Justice (DOJ) yesterday started its preliminary investigation on criminal charges against 36 members of the alleged syndicate behind the P900-million bitcoin investment scam.

The principal respondents arrested by the Philippine National Police (PNP) last April 4 – couple Arnel and Leonady Ordonio – failed to appear in the hearing in the charges for syndicated estafa filed by 28 victims.

Only 10 respondents faced investigating Assistant State Prosecutor Charlie Guhit and submitted their respective counter-affidavits.

The prosecutor has set the next hearing on May 24 for submission of the answers by the Ordonio couple and other respondents.

In its complaint, the PNP's Criminal Investigation and Detection Group alleged that the couple, through their company NewG Bitcoin, enticed over 100 people to invest millions in pesos in the popular cryptocurrency.

Under the scheme, the investors were promised a 30-percent return of investments with pay outs every 15 days. It is similar to pyramiding scheme where there was an upline or the one who asks people to invest, and a downline, the one who invests. Investors had the option to invest P90,000 and P160,000 per slot.  

Bitcoin is a digital currency developed in 2009 used as a payment system. It works without a central bank or single administrator.

It made headlines last year because of its fast rise from $963 per bitcoin in January last year to nearly $20,000 in December.