- Australian regulators have dismantled 95 companies involved in crypto investment and romance scams, resulting in over $35.8 million in losses.
- The Federal Court confirmed 17 companies’ involvement in fraudulent crypto platforms, with three firms having funds and 92 lacking assets, leading to their urgent deregistration.
- ASIC continues to shut down scam websites, having already closed 10,000 fraudulent sites, and is intensifying oversight on crypto ATMs to combat money laundering and fraud.
Australian regulators have dismantled 95 companies suspected of running crypto investment and romance scams, marking one of the country’s most sweeping crackdowns against cryptocurrency related fraud.
ASIC announced the Federal Court approved their request to close the firms due to fair and appropriate reasons. The authorities took action because their probe showed the companies used fake data in their registrations and acted together in pig butchering scams.
Scammers develop fake online relationships and gain trust before leading victims into crypto platform investment scams. Justice Angus Stewart, in charge of this case labeled the presented facts as undeniable while explaining there was no reason to trust how these companies were managed.
Court Confirms 17 Scam Companies Involved in Australia
On March 21, the court examined 17 companies and confirmed their involvement in scam patterns through false trading platform representations. The Federal Court assigned liquidation duties to Catherine Conneely and Thomas Birch of Cor Cordis to manage 95 firms that need financial recovery. Finally they recommended urgent deregistration because three companies had funds while 92 other companies had no assets.
Since their start, the liquidators have processed nearly 1500 victim claims from 14 nations such as Australia, the United States, and several others. The victims have declared losses exceeding $35.8 million in total.
ASIC detected that criminals copied official investment platform designs as part of their deception. ASIC Deputy Chair Sarah Court explained that scam companies use their setup to appear secure. Scammers employ multiple methods to trick people out of their money and personal habitations.
ASIC takes action as part of a wide-scale battle to stop fraudulent Internet investment schemes. According to ASIC’s latest report, they have closed more than 10,000 dangerous websites with specific action against 7,200 fake investment sites and 1,500 phishing scams per week.
ASIC strengthens its crypto ATM monitoring work because failing firms must now follow anti-money laundering laws or face legal punishment. AUSTRAC detects suspicious activity tied to crypto ATMs which drives agencies to control crypto ATMs better.
Authorities encourage Australians to check their sources carefully before giving money to new investment platforms.