Australia has cracked down on 95 companies that are believed to have operated crypto investment and romance scams under the guise of legitimate businesses.
In its latest enforcement action against cryptocurrency crimes, the Australian Securities and Investments Commission confirmed in an April 8 statement that the Federal Court had approved its application to shut down the companies.
According to the commission, the court agreed to wind them up on just and equitable grounds, with ASIC finding that most were registered using false information.
The watchdog suspects the companies were part of coordinated scam operations, particularly linked to “pig butchering” schemes, where scammers build fake online relationships to earn victims’ trust before tricking them into investing in fraudulent crypto platforms.
Justice Angus Stewart, who presided over the matter, described the case for winding up the companies as “overwhelming,” adding that there was a justifiable lack of confidence in their conduct and management.
In a March 21 ruling reviewing 17 firms from the list, the court found a clear pattern of pig butchering scams linked to deceptive websites and apps.
The Federal Court appointed Catherine Conneely and Thomas Birch of Cor Cordis as joint liquidators of the 95 firms. In their initial investigation, they found that only three companies held any assets, prompting a recommendation to deregister the remaining 92 immediately.
The liquidators have since received nearly 1,500 claims from alleged victims across 14 countries, including Australia, the United States, Cameroon, Ghana, India, Nepal, the Philippines, and France. Reported losses exceed $35.8 million.
ASIC believes many of the websites and mobile apps tied to the companies were designed to mimic legitimate trading platforms, tricking users into thinking their funds were being properly invested. In reality, the platforms were fake, and victims’ money was funnelled into accounts controlled by the offenders.
“These companies were set up with the aim of providing a veneer of credibility,” said ASIC Deputy Chair Sarah Court, warning that “scammers will use every tool they can think of to steal people’s money and personal information.”
ASIC has been targeting such fraud aggressively and has been taking down roughly 130 scam websites per week, according to the announcement. To date, the agency claims to have shut down over 10,000 malicious sites, including more than 7,200 fake investment platforms and 1,500 phishing scams.
Last month, the agency also moved against crypto ATM operators, warning that those failing to comply with anti-money laundering rules would face legal action. AUSTRAC flagged a rise in suspicious transactions and scams tied to the machines, urging tighter oversight on Australia’s crypto ATM network.
