Have crypto fraudsters infiltrated local government in Asia? It seems the answer is yes as information has emerged linking a former Philippine Mayor to a crypto scam group operating in Asia.
This is an indication of growing concern about crypto scam rings in Southeast Asia and Hong Kong, which may have gained ground in some local governments in the region.
Recent information has revealed the connection of ousted Philippine city mayor Alice Guo to the operator of Atom Asset Exchange, a cryptocurrency company that was shut down after squandering millions of customers’ money.
The limited regulations placed on cryptocurrency in Asian markets are being exploited by crypto fraudsters who exploit inexperienced traders who have little experience navigating this complex market.
Former Mayor Linked To Crypto Exchange That Stole Millions From Users
Former Philippine mayor Alice Guo has been linked to the defunct Atom Asset Exchange (AAX), which stole millions of crypto from users in 2022. Guo, who has been involved in human trafficking and illegal… pic.twitter.com/sYKA1q42Gk
– VERITAS PROTOCOL (@veritas_web3) October 14, 2024
Guo-Crypto Scammers Linkage
Initial information showed that Huang Zhiyang, Guo’s business partner in the Baofu business, has a business relationship 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 combination of illegal operations throughout Southeast Asia and Hong Kong. One of these is the now defunct Atom Asset Exchange that stole millions of dollars from cryptocurrency owners in 2022.
This connection has added another dimension to local governance in the Philippines, emphasizing the need for transparency and accountability of those in public office.
AAX Crypto Provider Misuses $30 Million in Customer Funds
Reports have revealed that Atom Asset Exchange misappropriated the funds of its users which are suspected to be 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 founded by Su Weiyi in 2019. With more than two million users, the digital asset provider used to be on the list of the top 20 crypto exchanges in the market.
Investigators suspect that Su is the mastermind behind the theft of customers’ funds. The available information links him to a network of illegal activities run by Guo and his friends.
Guo Faces Multiple Charges
Guo, along with several people, is now facing several charges of human trafficking and money laundering for their alleged involvement in illegal gambling operations in the Philippines.
Philippine lawmakers are also questioning his Filipino citizenship after his fingerprints match those of a Chinese national named Guo Hua Ping and some lawmakers suspect he is a Chinese spy.
Guo has denied all these charges, maintaining his innocence of committing those crimes. However, his connections with the operators of Atom Asset Exchange may further prove his involvement in organized crime in the Philippines.
Featured image from tarlakenyo, chart from TradingView