ASIC targets crypto scams, closes 95 companies
ASIC closes 95 firms in global crypto scam bust
In a major crackdown on crypto-related fraud, the Australian Securities and Investments Commission (ASIC) has secured court approval to shut down 95 companies linked to international romance-based cryptocurrency scams.
The Federal Court of Australia ruled in favor of ASIC’s application, finding that each company had been established under false pretenses and served primarily as fronts for fraudulent operations.
According to ASIC, these companies were often registered using stolen or fabricated identities and offered no legitimate services, instead being used to lure individuals into fake romantic relationships that led to fraudulent crypto investments—a growing form of scam often referred to as “pig butchering.”
Liquidators begin payout process
The Federal Court appointed liquidators to oversee the closure and asset distribution of the companies. As of this week, over 1,500 claims worth more than $35 million have been submitted by victims spanning 14 countries, including the U.S., India, France, Ghana, Nepal, and Australia itself.
Justice Stewart, presiding over the case, called the case for winding up the companies "overwhelming." The ruling reflects growing international concern about the spread of crypto romance scams, many of which exploit emotional manipulation to defraud victims.
Broader anti-fraud efforts
ASIC has also shut down over 10,000 scam websites, including fake crypto platforms and phishing pages. In the second half of 2024 alone, 2,460 scam sites were removed. These actions have contributed to a 17.87% reduction in scam reports and a 26% decline in financial losses from scams in Australia over the past year.
A month earlier, ASIC also shut down more than 10,000 investment fraud sites in a major operation.
We've also been informed that ASIC seeks court order to liquidate Falcon and First Guardian assets.
