Why $150 Million in Crypto Assets Were Frozen in the Philippines

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The Philippines has frozen $150 million in cryptocurrency assets - not because of a hack, not because of a scam, but because the platforms holding those funds weren’t licensed to operate in the country. This isn’t a minor cleanup. It’s a seismic shift in how the Philippines is handling its booming crypto market, where over $107 billion in digital assets are already in circulation. And for tens of thousands of everyday Filipinos, it’s turned their savings into digital limbo.

What Exactly Got Frozen?

The Securities and Exchange Commission (SEC) of the Philippines targeted 20 unlicensed crypto exchanges in early 2025. These weren’t offshore shell companies hiding in tax havens. Many were platforms actively marketing to Filipinos - offering low fees, easy mobile sign-ups, and promotions tied to local payment methods like GCash and Maya. They looked legitimate. They felt safe. Until one day, they just vanished from app stores and websites.

The frozen assets weren’t random. About 68% were stablecoins - mostly USDT and USDC - the digital tokens pegged to the U.S. dollar that most Filipinos use to avoid Bitcoin’s wild swings. Another 22% was Bitcoin, and 10% were other altcoins. The money was spread across Ethereum (45%), Binance Smart Chain (30%), and Tron (15%). These aren’t obscure blockchains. They’re the backbone of everyday crypto use.

The SEC didn’t freeze the assets because they were stolen. They froze them because the platforms didn’t register as Crypto-Asset Service Providers (CASP) under new rules issued in January 2025. That’s it. No court order. No criminal charge. Just a regulatory box left unchecked.

Why Now? The Three-Year Moratorium

This crackdown didn’t come out of nowhere. For three years, from September 2022 to September 2025, the Bangko Sentral ng Pilipinas (BSP) put a hold on issuing licenses to any crypto exchange. The idea was to study the market. But while regulators watched, the market exploded. By early 2025, over 20 million Filipinos were using crypto platforms - mostly Coins.ph, which is licensed and regulated. But dozens of others filled the gap.

The SEC stepped in because the unlicensed platforms were becoming a problem. They weren’t keeping customer funds separate from company money. They weren’t verifying identities. They weren’t reporting suspicious activity. And when users tried to withdraw, some platforms delayed or disappeared. The SEC saw a ticking time bomb.

The freeze was a signal: the grace period is over. The BSP’s moratorium ends September 1, 2025. The SEC wanted to clear out the bad actors before new licenses were issued. It wasn’t just about control. It was about survival - protecting millions of Filipinos who treat crypto like a bank account.

Who Lost Money? And How Hard?

The average loss per affected user was $4,670. That’s not pocket change. In the Philippines, that’s nearly a year’s salary for many. Reddit threads like “My $15k frozen in Bitget PH - What now?” had over 1,200 upvotes. People weren’t just angry. They were terrified.

Trustpilot reviews for the blacklisted exchanges dropped from 4.2 stars to 1.3 in just two months. The top complaints? “Funds frozen without warning” and “No clear way to get them back.”

The SEC set up a recovery unit - the Crypto Asset Recovery Unit (CARU) - to help users get their money back. But the process is brutal. You need:

• A government-issued ID
• Proof of ownership - blockchain transaction records
• Documentation showing your funds weren’t from illegal activity

Only 12% of applicants have completed the process. Why? Many users didn’t save their transaction IDs. Others couldn’t access old wallets. Older Filipinos - who make up 28% of those affected - struggled with digital forms and online verification. 34% of applications got rejected for incomplete paperwork. Another 22% are under investigation.

Even licensed platforms like Coins.ph are overwhelmed. Their support tickets jumped 300%. Resolution times went from 12 hours to 72 hours. People aren’t just waiting for their money. They’re waiting for answers.

Is This Fair? Experts Are Divided

Dr. Maria Santos, a financial regulation professor at the University of the Philippines, called the freeze “necessary but harsh.” She pointed out that many users didn’t even know they were using an unlicensed platform. They just downloaded the app because it had good reviews and low fees.

Former BSP Deputy Governor Nestor Espenilla Jr. disagreed. He said the Philippines was becoming a magnet for crypto crime. In the first half of 2025 alone, $2.17 billion was stolen globally from crypto services. The Philippines had seen a 40% rise in phishing scams targeting crypto users. “If you don’t clean the house now,” he said, “you’ll be cleaning up a disaster later.”

A survey by the Association of Cryptocurrency Enthusiasts of the Philippines (ACEP) showed 62% of users supported the freeze - but 78% had no idea what licensing rules they were breaking. That’s the real failure: communication.

What Happens Next?

The SEC announced a “Regulatory Sandbox” starting September 15, 2025. Ten platforms will be allowed to operate temporarily while the full licensing system is built. The BSP will begin accepting applications for full licenses the same day.

The SEC also said it might release a portion of the frozen funds to verified users starting November 1, 2025. But legal battles are already brewing. Bitget and Bybit - both blocked in the Philippines - are preparing lawsuits. They argue the SEC didn’t give them enough time to comply.

The real question isn’t whether the freeze was justified. It’s whether the system can handle the fallout. Can the SEC process 30,000+ claims fairly? Can users recover their money before they’re forced to sell their homes or skip medical care? Can the government rebuild trust?

What This Means for You

If you’re a Filipino using crypto:

• Only use platforms listed on the SEC’s official CASP registry.
• Keep your transaction IDs, wallet addresses, and withdrawal confirmations.
• Never ignore a platform’s terms - even if they seem boring.
• If your funds are frozen, don’t wait. File with CARU now. The deadline isn’t set, but delays hurt your chances.

If you’re outside the Philippines:

• This isn’t just a local issue. It’s a warning. Emerging markets are moving fast on crypto regulation.
• Platforms that ignore local laws won’t survive. Not even big ones.
• Regulators aren’t trying to kill crypto. They’re trying to stop it from killing people.

Will the $150 Million Ever Be Unfrozen?

It’s not all lost. The SEC isn’t trying to confiscate money. They’re trying to separate good funds from bad ones. If you can prove you bought crypto legally, you have a shot. But you need to act - and you need to document everything.

The $150 million isn’t just a number. It’s 30,000 stories. A mother who saved for her child’s education. A farmer who used crypto to sell produce overseas. A student who traded to pay tuition. Their money isn’t gone. But unless they jump through the SEC’s hoops, it might as well be.

The Philippines didn’t ban crypto. It demanded responsibility. And now, the real test begins.

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