Australia\u2019s financial watchdog is taking a hard stance on crypto and romance scams. The Federal Court of Australia has approved the Australian Securities and Investments Commission\u2019s (ASIC) request to shut down 95 companies tied to fraudulent activity\u2014including crypto trading and romance scams known as “pig butchering.”<\/p>\n\n\n\n
The court order, granted on just and equitable grounds, follows ASIC\u2019s findings that many of these firms were set up using false information and posed as legitimate service providers while allegedly defrauding victims.<\/p>\n\n\n\n
ASIC labeled the companies as \u201chydras\u201d due to their rapid multiplication\u2014shut one down, and two more take its place. Deputy Chair Sarah Court said that while the companies claimed to offer real services, most were part of elaborate scam networks.<\/p>\n\n\n\n
Justice Angus Stewart, reviewing evidence from 17 of the companies, noted a \u201ccommon pattern of scam activity\u201d consistent with pig butchering schemes. These scams involve con artists building fake romantic or friendship-based relationships to gain trust, eventually persuading victims to invest in fraudulent crypto projects.<\/p>\n\n\n\n
ASIC suspects much of this scam activity originates in Southeast Asia. The regulator has now appointed Catherine Conneely and Thomas Birch of Cor Cordis as joint liquidators for the 95 companies.<\/p>\n\n\n\n
So far, the liquidators have received nearly 1,500 claims from defrauded individuals across 14 countries\u2014including Australia, the U.S., India, the Philippines, and France\u2014totaling over $35.8 million. Shockingly, only three of the 95 companies had any identifiable assets.<\/p>\n\n\n\n
The liquidators recommended the immediate winding up and deregistration of 92 of the firms, with only a small handful showing signs of legitimate operations.<\/p>\n\n\n\n
In addition to shutting down fake companies, ASIC is aggressively targeting online scam operations. The agency says it currently removes around 130 scam websites every week. So far, it has taken down over 10,000 sites, including:<\/p>\n\n\n\n
\u201cThese scams are like hydras,\u201d Court said. \u201cYou shut down one and two more take its place. That\u2019s why we\u2019re warning consumers to stay alert. The threat of scams and identity fraud remains high.\u201d<\/p>\n\n\n\n
Fortunately, there are signs of progress. Australia\u2019s National Anti-Scam Centre recently reported that scam-related losses fell by 26% to $2 billion in 2024. The total number of scam reports also dropped 17.8% to 494,732.<\/p>\n","protected":false},"excerpt":{"rendered":"
Australia\u2019s financial watchdog is taking a hard stance on crypto and romance scams. The Federal Court of Australia has approved the Australian Securities and Investments Commission\u2019s (ASIC) request to shut down 95 companies tied to fraudulent activity\u2014including crypto trading and romance scams known as “pig butchering.” The court order, granted on just and equitable grounds, […]<\/p>\n","protected":false},"author":13,"featured_media":3033,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2,43,40],"tags":[],"class_list":{"0":"post-14174","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-featured","8":"category-general-news","9":"category-regulation"},"acf":[],"yoast_head":"\n