Five people were arrested in an entrapment operation in San Carlos City, Pangasinan, for running an unlicensed cryptocurrency investment scheme.

The operation happened at around 5:20 p.m. on May 13 and was led by the PNP Anti-Cybercrime Group (ACG) and the Dagupan Provincial Cyber Response Team in coordination with the Securities and Exchange Commission (SEC).

Inside the raided building, police found staff members, computers, cash, logbooks, and other business items used in the alleged scheme.

“Nag-conduct po tayo ng verification, surveillance, online monitoring and investigation. So, we assisted the SEC sa pag-conduct ng operation,” PLT. Wallen Mae Arancillo, spokesperson of the PNP ACG, said.

Authorities said the suspects were offering a crypto investment product without a permit. Each investor was asked to shell out at least P30,000 and was promised a 10 percent monthly interest.

“Nakita ng SEC, ayon sa certification nila, walang authorization or permit ‘yung isang company na nagka-conduct ng cryptocurrency investment kaya sila nahuli,” Arancillo said.

According to the PNP, the company had been operating since 2022. The SEC is currently assessing the company’s legitimacy.

“Meron assessment ang SEC for them to validate and verify kung legit po ito at karapat-dapat na bigyan ng permit or authority ang isang company,” she added.

Brigadier General Bernard Yang, acting director of the PNP ACG, reminded the public to be cautious when dealing with online investments.

“Cryptocurrency investments are governed by existing laws, and violators will face serious penalties, including imprisonment. We urge the public to report any suspicious or unauthorized cryptocurrency activities to the nearest ACG office,” he said in a statement.

“Huwag basta maniniwala sa mga nakakausap online,” Arancillo warned.

“Beware sa mga too good to be true na offers,” she added.

The arrested individuals will face charges for violating the Securities Regulation Code in connection with the Cybercrime Prevention Act of 2012.