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Ruholamin Haqshanas
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Ruholamin Haqshanas
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Authorities in Australia have taken action against a major network of fraudulent companies linked to crypto investment and romance scams, shutting down 95 firms believed to be operating under false pretenses.
In an April 8 statement, the Australian Securities and Investments Commission (ASIC) announced that the Federal Court had approved its application to wind up the companies.
The court ruled that the businesses should be closed on “just and equitable” grounds, with ASIC finding that many were registered using false or misleading information.
Australia Links 95 Firms to Pig Butchering Crypto Scam Scheme in Major Crackdown
The companies are suspected of being part of a widespread scam operation, particularly involving “pig butchering” schemes — a method where scammers cultivate fake romantic or emotional relationships online to lure victims into investing in bogus crypto platforms.
Justice Angus Stewart, who reviewed the case, called the evidence “overwhelming” and said there was little confidence in the management and operations of the firms in question.
A March 21 ruling examining 17 of the companies revealed extensive links to fraudulent websites and mobile applications.
The Federal Court has appointed Catherine Conneely and Thomas Birch of Cor Cordis as joint liquidators.
Their preliminary investigation revealed that only three of the 95 companies held any assets. They have since recommended the immediate deregistration of the other 92.
So far, nearly 1,500 claims have been submitted by alleged victims across 14 countries, including Australia, the U.S., India, France, Nepal, and Ghana. Reported losses currently exceed $35.8 million.
According to ASIC, the scam platforms mimicked legitimate investment and trading websites to mislead users into believing their funds were being safely managed.
In reality, the money was being siphoned into accounts controlled by the fraudsters.
“These companies were set up with the aim of providing a veneer of credibility,” said ASIC Deputy Chair Sarah Court.
“Scammers will use every tool they can think of to steal people’s money and personal information.”
ASIC Shuts Down 130 Scam Websites Weekly
ASIC noted it has been ramping up enforcement, taking down an average of 130 scam websites per week.
To date, it has disabled more than 10,000 malicious websites, including over 7,200 fake investment platforms and 1,500 phishing scams.
In a related crackdown, ASIC also recently targeted crypto ATM operators who failed to meet anti-money laundering regulations, following a spike in suspicious activity linked to the machines.
Last month, the Australian Federal Police (AFP), National Anti-Scam Centre (NASC), and Binance Australia issued warnings to victims about the sophisticated fraud scheme, which leverages fake messages to deceive users into transferring their crypto holdings.
At the time, the AFP revealed that over 130 potential victims had been notified as part of a proactive crackdown on the scam.
Fraudsters reportedly used SMS and encrypted messaging platforms to pose as Binance representatives, falsely claiming that victims’ accounts had been compromised.
