The kidnapping case of a Filipino-Chinese businessman, Guo, has revealed vulnerabilities in the gambling payment system. The two casino intermediaries involved, "Bai Ma Hui" and "Jiuding Group," both have their own electronic wallet systems.
Reports indicate that these platforms not only allow users to open accounts, transfer money, and even conduct cryptocurrency transactions but were also used to distribute salaries to POGO company employees.
Some commentators believe that the model of "receiving salaries and then going to the casino to collect" essentially allows players to return funds to the platform in the form of game points to participate in gambling, posing significant compliance risks. Since neither company has obtained official licenses from the Central Bank of the Philippines or anti-money laundering institutions, their payment operations have long been in a regulatory vacuum, providing opportunities for criminals.
The police also pointed out that companies like Jiuding Group were involved in money laundering and other illegal activities.
The investigation revealed that about 200 million pesos in ransom paid by Guo's family was transferred through these two platforms to about ten electronic wallet accounts and eventually converted into cryptocurrencies; most of these accounts were registered under false identities, and the funds were split and transferred multiple times.
Currently, law enforcement has frozen about 4.4 million pesos (approximately over 100,000 USD) of the involved crypto assets, but the rest of the ransom has "disappeared on the chain" and is difficult to recover. This chain of funds is cross-border and highly anonymous, making traditional monitoring methods ineffective.
The ransom transfer process also involved the Cambodian payment platform "Huione Pay." According to the Philippine police, most of the ransom was cashed out through this platform's USDT account.
Huione Group is one of the largest payment groups in Cambodia, and U.S. regulatory authorities have listed it as a "major money laundering concern" and plan to prohibit U.S. financial institutions from providing account services to it.
A U.S. Treasury report pointed out that Huione Group has built a complete money laundering chain from payments to virtual assets through its "Huione Pay," Huione cryptocurrency exchange, and "Huione Guarantee."
FinCEN data shows that from August 2021 to January 2025, Huione assisted in laundering over 4 billion USD in illegal funds. The report also criticized Huione for severe deficiencies in anti-money laundering (AML) and customer identification (KYC) practices, with almost no due diligence performed by its business units, making it a high-risk node for transnational money laundering activities.
In response to these issues, Philippine regulatory authorities have launched investigations and taken measures. The National Police announced the tracking results at a press conference and recommended revoking the gambling intermediary licenses of Jiuding Group and Bai Ma Hui, freezing and seizing related assets, and initiating criminal prosecutions against those involved (including charges of money laundering and aiding kidnapping).
According to reports, the Philippine Anti-Money Laundering Council conducted a surprise inspection of these two platforms last year, requiring large accounts to provide proof of funds. However, in Guo's case, a large ransom was quickly transferred and entered the cryptocurrency network with almost no audit, exposing serious loopholes in regulatory oversight. To date, law enforcement has only been able to freeze a small amount of the involved assets, with the rest of the funds untraceable.
This series of events has sounded an alarm for gambling operators. Legislators warn that money laundering and criminal activities through gambling intermediaries have severely threatened national financial security.
The U.S. also emphasizes the compliance risks of payment platforms, pointing out that payment groups like Huione have significant flaws in customer identity verification and transaction monitoring.
Industry insiders suggest that operators should immediately review their payment channels, only choose licensed and regulatory-compliant payment service institutions, strictly implement AML/KYC regulations, and remain highly sensitive to abnormal transactions. Ensuring a transparent and traceable payment chain and maintaining close communication with regulatory authorities are key to preventing money laundering risks and maintaining business security.
