The Philippine National police rescued 1,090 people who were trafficked into the country in connection with cryptocurrency scams. Local authorities also arrested at least 12 suspects.

The scammers are believed to be linked to Colourful and Leap groups. All the defendants were heard in the human trafficking investigation at the Justice Department in Manila. The group was allegedly involved in a number of fraudulent activities and cryptocurrency schemes.

The report mentions that victims of trafficking come to the country in search of jobs, free air tickets and accommodation. However, their passports were confiscated upon arrival in the country. In addition, they are forced to work up to 18 hours a day, with their pay deducted when they rest.

Michelle Sabino, a spokesperson for the Philippine National Police's Anti-Cybercrime unit, explained how cryptocurrency fraud works. She alleged that employees were coached to convince outsiders to buy crypto assets or deposit funds into fraudulent bank accounts after forming fake romantic relationships.

In total, the authorities rescued 1,090 people who were trafficked from various countries and held against their will to commit online fraud. The majority of employees are from Asia, including the following countries: Vietnam (389), China (307), the Philippines (171), Indonesia (143), Nepal (40), Malaysia (25), Myanmar (7), Thailand (5), Taiwan (2) and Hong Kong (1).

According to blockchain security firm CertiK, crypto-related exploits, hacks, and scams cost the industry $103.6 million in April 2023. The industry lost $9.3 million and $19.8 million due to exit scams and flash loan attacks, respectively.