Have crypto fraudsters infiltrated local government in Asia? It appears the answer is yes, as reports linking a former Filipino mayor to a crypto scam group operating in Asia have surfaced.
This is an indicator of growing concern over crypto scam networks in Southeast Asia and Hong Kong, which may have gained a foothold in some local governments in the region.
Recent reports have exposed the connection between the fired mayor of the Philippine city, Alice Guo, and the operators of Atom Asset Exchange, a cryptocurrency business that shut down after squandering millions of customer funds.
The limited regulations imposed on cryptocurrency in Asian markets are being exploited by cryptocurrency fraudsters who prey on inexperienced traders who have little knowledge of navigating this complex market.
Former mayor linked to crypto exchange that stole millions from users
Former Philippines Mayor Alice Guo has been linked to the defunct Atom Asset Exchange (AAX), which stole millions of crypto from users in 2022. Guo, previously involved in human trafficking and illegal… pic.twitter.com/sYKA1q42Gk
– VERITAS PROTOCOL (@veritas_web3) October 14, 2024
Link between Guo-Crypto fraudsters
Initial reports showed that Huang Zhiyang, an associate of Guo in the Baofu company, has business ties with the fake Sun Valley Clark Hub Corporation.
According to Rappler, the owners of the Sun Valley Clark Hub are also known to operate a range of illegal activities in Southeast Asia and Hong Kong. One of them is the now-defunct Atom Asset Exchange, which stole millions of dollars from cryptocurrency holders in 2022.
This connection has added another dimension to local governance in the Philippines, highlighting the need for more transparency and accountability from those holding public office.
Crypto Provider AAX Misuses Customer Money by $30 Million
Reports have emerged that Atom Asset Exchange has embezzled its users’ funds, allegedly amounting to around $30 million.
As of today, the market cap of cryptocurrencies stood at $2.25 trillion. Chart: TradingView.com
The Hong Kong-based crypto asset provider was established by Su Weiyi in 2019. With over 2 million users, the digital asset provider was once on the list of top 20 crypto exchanges in the market.
Investigators suspect Su of being behind the theft of client funds. Available information links him to the network of illegal operations run by Guo and his associates.
Guo faces multiple charges
Guo and several others now face multiple human trafficking and money laundering charges stemming from their alleged involvement in illegal gambling operations in the Philippines.
Philippine lawmakers are also questioning her Filipino citizenship after her fingerprints matched those of a Chinese national named Guo Hua Ping, with some lawmakers suspecting she is a Chinese spy.
Guo has refuted all of these accusations, maintaining his innocence of committing these crimes. However, his ties to the operators of Atom Asset Exchange could further prove his involvement in organized crime in the Philippines.
Featured image of tarlakenyo, chart by TradingView
