Customs, PDEA bust 7107 “E” drug supplier

MANILA, Philippines—A narcotics dealer who allegedly used the controversial virtual currency bitcoin to buy “Ecstacy” for resale to the young and rich was busted by the authorities last month in a crackdown on the growing online drug trade in the country.

The Bureau of Customs and the Philippine Drug Enforcement Agency said in a joint press statement released by the BOC Friday that the suspect, identified as Prabhjot Singh Gill, was a “big-time” supplier of 3,4-methylenedioxymethamphetamine or MDMA, otherwise known as “Ecstasy,” in Metro Manila and surrounding provinces.

The bulk of the “Ecstacy” sold at the recent 7107 International Music Festival in Pampanga came from Gill, the joint press release said.

Four people were arrested at the same two-day concert for marijuana possession.

Gill’s arrest confirmed fears that bitcoin, an undefined and unregulated virtual “currency” in most jurisdictions, was being used for shady transactions, among them drug trafficking and money laundering.

“Our interview on Gill has revealed that drug traders are taking advantage of the internet and online selling sites. These findings is another challenge and will change the way we operate,” PDEA Regional Director Jeoffrey Tacio said in the statement.

The statement said Gill admitted buying 500 tablets of “Ecstacy” from a black market website. The drugs, which he had mailed to the Philippines from the Netherlands, were paid for using bitcoin.  Each “Ecstacy” pill has a street value of P1,500, PDEA said. This particular shipment was seized by PDEA and the Bureau of Customs last April 2.

Also known as “E,” “Ecstacy” has gained popularity among young, affluent men and women  who use the drug that causes relaxation and exhilaration. Its users can die from stroke, heart attack or high body temperature, while long-term effects include brain damage, liver damage, psychosis and depression.

Last February, six sacks of regulated drugs, including the anti-anxiety drugs Ativan (lorazepam) and Valium (diazepam) were seized at the Philippine Postal Service’s Central Mail Distribution Center in Pasay city.

The shipment was declared as used clothing and shoes and was consigned to Winnie Ramos of Marikina City. The package was shipped ostensibly by a Faham Jamal of the Department of Sciences in Islamabad, Pakistan.