Philippine Court Freezes Crypto and Bank Accounts in Flood Control Probe

Court Freezes 116 Assets in Flood Control Kickback Probe

The Philippine Court of Appeals has issued a freeze order on 116 financial assets, including 25 cryptocurrency wallets, linked to a prominent lawmaker. The move is part of an ongoing plunder investigation into alleged kickbacks received from government flood-control projects.

The freeze order, dated September 21, 2026, was announced by the Anti-Money Laundering Council (AMLC) on October 1, 2026. The seized assets comprise 86 bank accounts, 4 investment accounts, and 1 insurance policy, in addition to the 25 virtual asset wallets. These assets are reportedly connected to the lawmaker and several associated individuals.

The investigation is being conducted under Republic Act No. 7080, commonly known as the Philippines’ Plunder Law. Investigators stated they have established probable cause linking the frozen assets to a broad kickback scheme involving flood-control projects.

According to the AMLC’s findings, there was a concerted effort to conceal the origins of the funds. Allegations suggest that money was funneled through numerous intermediaries, financial institutions, and digital platforms. The council also highlighted the presence of substantial sums that could not be reconciled with legitimate operational revenues.

The identities of the individuals associated with these accounts remain confidential under legal protections as the case progresses.

This is not the first action taken in the widening flood-control scandal, which first surfaced in 2025 and has implicated multiple lawmakers. Previous asset freezes in the investigation have already encompassed tens of billions of pesos. The inquiry has also uncovered what is described as widespread misconduct across various government agencies.

The AMLC specifically pointed to digital financial channels as instrumental in moving funds in a manner that obscured their source, placing virtual asset platforms on par with banks and intermediaries allegedly used in the scheme.

Several aspects of the case warrant close observation. Firstly, disclosure is key. The lawmaker and associated parties are currently protected by confidentiality, and any eventual public identification could significantly increase scrutiny on the probe.

Secondly, the scope of the investigation continues to expand. With previous freezes totaling billions of pesos and this latest order adding 116 assets, the scale of the alleged illicit financial activity is substantial.

Thirdly, the handling of the virtual asset component will be a significant test. While the 25 crypto wallets represent a smaller portion of the total assets by number, they present a challenge for authorities in tracing and securing funds held in digital form.