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Former Ako Bicol Party-list Representative Zaldy Co allegedly siphoned approximately â±5 billion out of the country using cryptocurrency while evading arrest in Portugal, according to Department of the Interior and Local Government (DILG) Secretary Jonvic Remulla.
What the Authorities Know
In an interview on Wednesday, December 17, Remulla stated that intelligence regarding the massive transfer came directly from the former lawmakerâs own associates. âWhat we know is through crypto, he transferred â±5 billion overseas,â Remulla confirmed.
âA Poor Manâ
Despite the liquidity provided by the alleged crypto transfers, Remulla remarked that Coâs world is shrinking due to mounting international legal pressure. âHe is a poor man with a lot of money,â Remulla said, noting that ânot all the money in the worldâ can resolve his legal troubles as a fugitive.
Recovery Challenges
While Remulla expressed hope that extradition is possible if Coâs crimes predated his Portuguese citizenship, the technical recovery of the assets faces significant hurdles previously identified by the Independent Commission for Infrastructure (ICI).
Undersecretary Renato Paraiso earlier revealed that suspects in the flood control scam utilized the dark web, VPNs, and a network of representatives (money mules) to convert billions into USDT and move it into cold wallets. Paraiso admitted that because many exchanges operate offshore, the Philippines does not exercise jurisdiction over them, often forcing the government to rely on the goodwill of these platforms to freeze assets rather than enforceable court orders. (Read more: Flood Control Scandal Linked to POGOs and Crypto Laundering)
Background
Co faces criminal charges, including malversation and graft, for his alleged role as a principal figure in the multibillion-peso flood control scam. He is accused of orchestrating controversial budget insertions totaling over â±13 billion in the 2025 national budget alone. In his defense, Co has released videos accusing President Marcos Jr. of directing similar unauthorized budget insertions, claims the Palace has firmly denied.
The CADENA Act
To prevent future incidents of massive fund diversion, the Senate recently passed the Citizens Access and Disclosure of Expenditures for National Accountability (CADENA) Act on third reading.
Authored by Sen. Bam Aquino, the âBlockchain the Budgetâ bill mandates that all government contracts and budget releases be uploaded to a public, immutable blockchain ledger. This system would theoretically make it impossible for officials to hide budget insertions or siphon funds into unverified accounts, ensuring real-time transparency for taxpayer money. (Read more: Update: Senate Passes CADENA, Previously âBlockchain the Budgetâ Bill on Third Reading)
This article is published on BitPinas: Fugitive Lawmaker Zaldy Co Zaldy Co Allegedly Moved â±5B via Crypto Amid Flood Scam
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