Australia Shuts Down 95 Crypto and Romance Scam Companies
Australia’s financial regulator, the Australian Securities and Investments Commission (ASIC), has successfully dissolved 95 companies involved in crypto and romance scams.
This action, approved by the Federal Court on April 7, highlights a crackdown on fraudulent operations that misled victims with fake company registrations and bogus investment opportunities.
Scam Companies Misled Victims with Fake Investments
These companies were part of a broader fraud network tied to the “pig butchering” scam model. This model combines emotional manipulation with fake crypto investment schemes to deceive victims into parting with large sums of money. Operating under the guise of legitimate businesses, these companies promoted non-existent investment opportunities in crypto, foreign exchange, and commodities.
ASIC’s Deputy Chair, Sarah Court, emphasized that these scams posed a serious consumer risk, as they were often masked with convincing websites and fraudulent corporate identities. This decision to shut down these entities was critical in protecting the public from further harm.
Ongoing Fight Against Online Scams
Despite the recent victories, ASIC’s fight against scams continues. Court described these fraudulent operations as a “hydra,” meaning that for every scam site shut down, new ones often emerge quickly. In an effort to stay ahead, ASIC removes over 130 scam websites weekly, but the persistence of such activities remains a major concern.
As part of the ruling, the court appointed joint liquidators, Catherine Conneely and Thomas Birch from Cor Cordis, to handle the dissolution of these companies. Nearly 1,500 claims have been submitted so far, with total losses exceeding $35 million, impacting victims from 14 countries, including the U.S., Australia, India, Ghana, and France. However, the assets of the dissolved companies amounted to just $33,018, with liabilities totaling over $38.6 million.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
