Australia’s Securities and Investment Commission (ASIC) has been cracking down on crypto scams, closing down a total of 615 scam websites in the past year. This is part of a larger effort to combat investment fraud in the country, with the regulator shutting down a total of 7,300 scam websites, including fake investment platforms and phishing sites.
The surge in investment scams has been alarming, with ASIC reporting approximately $1.3 billion in losses due to these scams in 2023 alone. By shutting down these websites, ASIC aims to disrupt the connection between scammers and potential victims, ultimately protecting Australians from falling victim to these fraudulent schemes.
Sarah Court, ASIC’s Deputy Chair, emphasized the need for swift action in removing these scam websites to protect consumers. She noted that scammers are constantly evolving and finding new ways to deceive people, and it is crucial for regulators to stay ahead of the game in detecting and disrupting these scams. On average, ASIC takes down 20 investment scam websites every day to combat this growing issue.
One of the scam websites that ASIC recently shut down was Dexa Trade Markets, identified as a crypto scam platform. This platform had falsely claimed international regulation, high trading volumes, and millions of investors, luring unsuspecting victims into investing in their fraudulent scheme.
The prevalence of crypto scams is not unique to Australia, as California’s Department of Financial Protection and Innovation (DFPI) also reported a high number of fraudulent trading platforms in 2024. Imposter websites, in particular, are a common tactic used by scammers to deceive victims by creating websites that mimic legitimate companies or platforms.
As the crypto industry continues to grow, regulators like ASIC and DFPI are working diligently to protect consumers from falling victim to these scams. By taking down scam websites and educating the public about the risks associated with crypto investments, these regulators are sending a clear message to scammers that their fraudulent activities will not be tolerated.