Australian authorities shut down 95 companies linked to global crypto romance scams

The Australia Securities and Investment Commission (ASIC) has shut down 95 companies connected to crypto romance scams. This follows court approval, which allows the regulation to wind down the corporate entities.

According to a statement from the regulator, the Federal Court of Australia agreed with its application to shut down these companies operating under false pretenses. Most of these companies reportedly registered using false details and did not offer any service; they only served as fronts for scammers.

The report said:

“The Court agreed with ASIC in finding that there was a justifiable lack of confidence in the conduct and management of each of the 95 companies, with Justice Stewart calling the case for winding up each company “overwhelming”.”

Upon granting the application, the court also appointed liquidators to manage the winding up, and victims are already sending their claims to them. Court filings show that the liquidators have received over 1,500 claims worth over $35 million from victims in 14 countries, including the US, India, Cameroon, Nepal, Ghana, France, and Australia.

Speaking on the matter, ASIC Deputy Chair Sarah Court said that ASIC had taken steps to protect investors. By removing the companies from its registry, they no longer have any credibility, which should help potential investors from falling victim.

She added that scammers use complex techniques, including registering companies with stolen identities to fleece victims. Pig butchering has become quite popular for scammers, with fake crypto investment schemes being a popular option.

According to a report by Chainalysis, pig butchering is one of the major factors driving crypto scams. The blockchain analytics firm said revenue from this scam increased by 40% between 2023 and 2024. It tied the origin of the scams to Southeast Asia but noted that they are expanding globally, with criminal syndicates using human trafficking victims to carry out the scams.

Interestingly, it was noted that scammers also use artificial intelligence, as AI tools now allow scammers to impersonate others and create fake content that looks genuine.

Australia’s ASIC has shut down over 10,000 scam websites

Meanwhile, the commission also noted that it has shut down websites and digital platforms associated with these companies. According to the Court, ASIC shuts down an average of more than 130 websites every week to stamp out the scams.

The ASIC report also shows that the regulator has taken down over 10,000 websites, including fake investment platforms, phishing hyperlinks, and crypto investment scams. 2,460 of these websites were taken down in the second half of 2024.

Still, these scams remain a major problem, and the regulators want consumers to be extra vigilant.

Court said:

“These scams are like hydras: you shut down one and two more take its place. That’s why we’re warning consumers that the threat of scams and identity fraud remains high. We remind consumers to be vigilant.”

So far, the efforts have helped to reduce crypto scams in Australia. The amount lost to scams in 2024 was $2 billion, a 26% decline compared to 2023. Scam reports also declined by 17.87%.

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