Recent significant progress has been made in the kidnapping and ransom case of Filipino-Chinese businessman Guo Congyuan. Binance, the world's largest cryptocurrency exchange, disclosed that its Financial Intelligence Unit (FIU) has assisted the Philippine police in successfully tracking the $3.75 million (approximately 2.2 billion pesos) in cryptocurrency ransom involved in the case. This amount is consistent with the total ransom previously announced by the police, indicating that the path of the entire ransom has been essentially clarified.
Casino electronic wallets serve as money laundering entry points, cryptocurrency "slicing" transfers to cover tracks
The Philippine National Police Anti-Cybercrime Group (PNP ACG) explained that the ransom initially flowed into an electronic wallet dedicated to a casino VIP room, then converted into cryptocurrency and dispersed into multiple anonymous wallets through "slicing" operations. This method has increased the difficulty of tracing funds. Binance used on-chain analysis technology to lock multiple wallet addresses related to the suspects, helping the police to sort out the complete flow of funds.
The police stated: "Binance's technical assistance has broken the bottleneck in on-chain tracing, allowing us to find key clues in highly dispersed data, which played a decisive role in the investigation of the case."
Gambling intermediaries become money laundering hubs, AMLC and multiple agencies jointly investigate
According to the Philippine Anti-Money Laundering Council (AMLC), the ransom was initially paid in pesos and US dollars, then converted into cryptocurrency, allegedly processed with the assistance of the Jiuding Group and White Horse Club, two casino VIP room operators. In May this year, AMLC, along with the police, PAGCOR, and several casinos, conducted a comprehensive investigation of the money flow, confirming that some funds were transferred through unregistered electronic wallets and local virtual asset service providers (VASP).
AMLC pointed out that the gang's operation methods are professional, often transferring funds through casino-specific electronic wallets, shell accounts, and cryptocurrency platforms, intentionally concealing their origins. Previously, the police had frozen 4.5 million pesos worth of Tether (USDT).
The Anti-Cybercrime Group also admitted that once the ransom was converted into cryptocurrency, the police lost direct jurisdiction and seizure capabilities. Binance's assistance enabled the police to break through the nearly stagnant investigation deadlock.
Is Binance intending to return to the Philippine market?
It is worth noting that although Binance was banned by the Philippine Securities and Exchange Commission in 2023 for "operating without a license," it has recently been actively recruiting for 92 positions in the Philippines on LinkedIn, covering operations, compliance, marketing, and other functions, with the job location marked as "Metro Manila Remote/Hybrid."
It is widely speculated that Binance's high-profile assistance in solving the major kidnapping case may also be part of its attempt to re-enter the Philippine market and convey a message of "compliance" and "cooperation" to the regulatory authorities. Some netizens bluntly stated: "Binance's PR move does not seem to be simply assisting the police in solving the case, but more like paving the way for lifting the ban."
However, Binance is still in a blocked state, and its official website cannot be directly accessed within the Philippines. Whether all the funds involved in the case have been successfully frozen has not yet been confirmed by the police. Considering that only 4.5 million pesos in assets have been frozen, there is still a gap between "tracking the entire fund path" and "complete freezing."
Binance: Willing to cooperate with global law enforcement to protect the digital financial ecosystem
Binance reiterated in its announcement that it is committed to cooperating with global law enforcement agencies to track illegal financial activities, maintain the integrity of the digital financial system, and assist victims in defending their rights.
However, some comments pointed out that although Binance's statement is eloquently phrased, whether its "helping the police find money" also has PR and market considerations remains to be seen.
The Guo Congyuan case has been fermenting since April this year, not only exposing the close connection between the Philippine gambling industry and underground financial channels but also highlighting the "accelerator" role of cryptocurrency in cross-border crimes. Currently, the Philippine police and multiple agencies are continuously investigating the financial chain of this case, and whether Binance can use this opportunity to re-enter the Philippine market remains to be observed.
