The Philippine Drug Enforcement Agency (PDEA) and the Cybercrime Investigation and Coordinating Center (CICC) have revealed a troubling new development in the ongoing battle against illegal drug trafficking: the increasing use of cryptocurrency as a payment system in the drug trade.
This troubling news was disclosed during the signing of a memorandum of agreement (MOA) between the two agencies on January 28, at the National Cybercrime Hub in Bonifacio Global City, Taguig.
CICC Executive Director Alexander K. Ramos explained that the agency had started investigating drug-related cybercrimes last year, focusing on tracking the financial transactions that fuel the illegal trade. Ramos said that by tracking the illicit drug trades’ payment system, “we were able to identify how drug money is circulating via cryptocurrency.”
The CICC has discovered that USDT, a widely used blockchain platform designed for digital transactions with fiat currencies, is now a prominent tool for drug payments. “Most of those we see are using USDT,” Ramos noted, adding that drug traffickers often first convert funds through local e-wallets before switching to cryptocurrency.
PDEA Officer-in-Charge, Assistant Secretary Renato Gumban, emphasized that the shift to cryptocurrency has made tracking illicit transactions much more challenging. “It used to be bank-to-bank, but now, the money trail is more difficult to follow,” he said. “We need technology, and that’s where CICC comes in.”
The MOA outlines a collaborative effort between CICC and PDEA to strengthen data sharing and technical support, enabling more effective investigations into drug-related cybercrimes. With CICC’s expertise, PDEA hopes to enhance its capabilities in combating violations of the Comprehensive Dangerous Drugs Act of 2002, which has been amended by Republic Act 10640. This partnership represents a crucial step in tackling the evolving, tech-driven strategies used by drug syndicates.
