- ASIC dismantles 95 companies linked to crypto pig butchering scams.
- Victims across 14 countries report over $35.8 million in losses.
- Over 10,000 scam websites have been taken down by ASIC to date.
Australia’s financial regulator ASIC has taken decisive action against a web of crypto scam operations. They achieved this by shutting down 95 companies suspected of facilitating fraud through fake trading platforms and online relationships.
The scams primarily followed the “pig butchering” model. In this model, victims are lured into trusting relationships and deceived into investing in non-existent crypto ventures.
Global Victims, Fake Platforms: Inside Australia’s Crypto Scam Takedown
The Federal Court’s decision to wind up 95 firms exposed a systemic abuse of corporate registrations. The court found most of the entities were created with fabricated details to present a façade of legitimacy. This made it easier for scammers to lure victims into a false sense of security.
The liquidators, Catherine Conneely and Thomas Birch, discovered that nearly all the companies had no assets or business activities. This confirmed the suspicion that these were shell firms set up solely to carry out fraud. This led to a recommendation to deregister 92 of them immediately.
Victims of these scams came from 14 countries, including Australia, India, Nepal, and France. Many reported being duped by apps and websites designed to mimic genuine trading platforms. Often, they were approached through romance scams or fake investment opportunities.
ASIC has been actively tackling crypto fraud and has already taken down more than 10,000 malicious sites. Its enforcement extends to crypto ATMs as well, where lax oversight has led to a rise in suspicious transactions. The agency’s proactive stance shows a growing commitment to cleaning up the crypto space.
Australia’s aggressive stance against crypto scams sends a clear warning to fraudsters. Manipulation and deception in the crypto world won’t go unchecked.
“Scammers will use every tool they can think of to steal people’s money and personal information.” — Sarah Court, ASIC Deputy Chair
