Jul 09, 2024 07:02 PM
Deadly Philippines Kidnapping Highlights Growing Demand for Crypto Ransoms
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USDT’s appeal to criminals is that it can be easily exchanged for dollars and other currencies.
The recent kidnapping case in the Philippines involving two ethnic Chinese hostages who were lured to the country and killed has highlighted the growing use of cryptocurrencies in criminal activities.
In this instance, the kidnappers demanded their ransoms be paid in the cryptocurrency USDT. Also known as Tether, USDT has become a popular tool for criminals to evade law enforcement due to its ease of transfer, anonymity and stable value.
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- Two ethnic Chinese hostages were kidnapped and killed in the Philippines, with ransom paid in USDT cryptocurrency.
- USDT, a stablecoin pegged to the U.S. dollar, is popular for illicit activities due to its anonymity and ease of transfer.
- Law enforcement from China, the Philippines, and the U.S. are investigating the case.
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Who’s Who
- Suzhou Rainmed Medical Technology Co. Ltd.
- Suzhou Rainmed Medical Technology Co. Ltd. is a company involved in the medical technology field. Xia Kefu, a 39-year-old Chinese national who served as the international marketing director for the company, was a recent victim in a kidnapping case in the Philippines. Xia was found dead after a ransom paid in USDT.
- Tether Ltd.
- Tether Ltd. introduced USDT, a type of cryptocurrency known as a stablecoin, in 2014. Unlike other cryptocurrencies like Bitcoin or Ethereum, USDT's value is pegged 1:1 to the U.S. dollar, providing stability. Stablecoins like USDT are often used to hedge against cryptocurrency volatility or as a medium of exchange in the digital asset space.
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What Happened When
- 2014：
- USDT was introduced by Tether Ltd.
- October 2023：
- An instance where kidnappers in the Philippines demanded ransom in USDT involving ethnic Chinese hostages in Manila.
- February 2024：
- Another instance where kidnappers in the Philippines demanded ransom in USDT involving ethnic Chinese hostages in Manila.
- June 20, 2024：
- Xia Kefu and Sun Jing flew to Manila from Beijing after being invited to meet potential business partners there.
- June 21, 2024：
- Families of Xia Kefu and Sun Jing received ransom demands from the kidnappers.
- June 24, 2024：
- Xia Kefu and Sun Jing were found dead near a lake some 500 kilometers from Manila after ransoms were paid into a USDT account.
- July 3, 2024：
- A child was abducted at the Tseung Kwan O Plaza in Hong Kong with a ransom note demanding 660,000 Tether.
- July 4, 2024：
- The child abducted from Tseung Kwan O Plaza in Hong Kong was rescued unharmed by local police.
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