In a recent development, authorities in Australia have cracked down on a major network of fraudulent companies involved in crypto investment and romance scams. The Australian Securities and Investments Commission (ASIC) announced the closure of 95 firms believed to be operating under false pretenses.
The Federal Court approved ASIC’s application to wind up the companies on grounds of “just and equitable,” citing the use of false or misleading information in their registrations. These companies are suspected of participating in a widespread scam operation, particularly involving “pig butchering” schemes. This deceptive method involves scammers building fake romantic or emotional relationships online to entice victims into investing in fake crypto platforms.
Justice Angus Stewart, who reviewed the case, described the evidence against the companies as “overwhelming” and expressed little confidence in their management and operations. A ruling on March 21 revealed extensive links to fraudulent websites and mobile applications across 17 of the companies.
Catherine Conneely and Thomas Birch of Cor Cordis have been appointed as joint liquidators by the Federal Court. Their initial investigation found that only three out of the 95 companies held any assets, prompting the recommendation for the immediate deregistration of the remaining 92.
Alleged victims from 14 countries, including Australia, the U.S., India, France, Nepal, and Ghana, have submitted nearly 1,500 claims, with reported losses exceeding $35.8 million. Scam platforms impersonated legitimate investment and trading websites to deceive users into thinking their funds were secure, while in reality, the money was funneled into accounts controlled by fraudsters.
ASIC Deputy Chair Sarah Court emphasized the deceptive tactics used by scammers, stating, “Scammers will use every tool they can think of to steal people’s money and personal information.” ASIC has been actively shutting down an average of 130 scam websites per week, disabling over 10,000 malicious websites to date, including fake investment platforms and phishing scams.
In a related move, ASIC targeted crypto ATM operators who failed to comply with anti-money laundering regulations following a rise in suspicious activity associated with the machines. The Australian Federal Police (AFP), National Anti-Scam Centre (NASC), and Binance Australia issued warnings to victims about a sophisticated fraud scheme leveraging fake messages to trick users into transferring their crypto holdings.
The proactive crackdown led to the notification of over 130 potential victims, with fraudsters using SMS and encrypted messaging platforms to pose as Binance representatives and falsely claim account compromises. The collaborative efforts of authorities aim to protect individuals from falling victim to crypto investment and romance scams, ensuring a safer environment for investors in Australia.