AUTHORITIES probing the flood control scam have discovered that several individuals linked to the scheme are now turning to cryptocurrency to conceal their funds. Renato Paraiso, chair of the Independent Commission for Infrastructure’s technical working group and acting executive director of the Cybercrime Investigation and Coordinating Center, said this shift has complicated efforts to trace the money trail.

“We’re seeing a new phenomenon that these personalities are laundering their money through crypto,” he said.

Paraiso explained that recovering assets in digital form, such as Bitcoin and USDT, is difficult due to the absence of strong local regulations governing crypto transactions. He revealed that the recent recovery of USDT was made possible only because one exchange voluntarily assisted investigators. 

“The basis na naka-recover tayo ng USDTs, according to AMLC, is just by mere cooperation kasi nakipag-cooperate sa atin ‘yung exchange ng USDT na nakita natin from one of the personalities…so na-recover natin ‘yun,” he said.

He added that most crypto platforms fall outside the reach of Philippine authorities.

“Pero yung ibang exchanges, if hindi sila tumugon sa pakiusap natin, wala tayo magagawa because we don’t exercise jurisdiction, regulation over them,” he added.

Paraiso noted that crypto’s structure, operating without banks and requiring no identification, allows users to move funds easily and anonymously, making it an attractive tool for laundering illicit wealth.

Despite these barriers, Paraiso pledged to keep pursuing hidden assets. 

“To recover what we can, where we can find it, however we can recover those assets,” he said.

He also cautioned that some illegally acquired funds may have already been transferred abroad to jurisdictions known for financial secrecy. 

“So kasama sa pinag-uusapan is to get contracts, legal treaties natin with all countries para makita natin na even if located outside the country, ma-recover natin,” he said.