ASIC Cracks Down on 95 Firms Tied to Crypto and Romance Scams

Australia’s corporate watchdog, the Australian Securities and Investments Commission (ASIC), has successfully gotten Federal Court approval to close 95 companies suspected of running crypto investment and romance scams, which is also known as “pig butchering.” This critical decision is a big step toward keeping people safe from digital scams and the financial system from fraud across countries.

Court-backed action against fraudulent firms

Justice Angus Stewart agreed with ASIC’s request to shut down these companies on April 4, claiming just and equitable grounds. Most of these businesses were found to have been set up using false information and were thought to be pretending to be actual companies while scamming people who didn’t know what was happening. The decision came after ASIC investigated 48 “Reviews of Misconduct” from 17 groups connected to romance-related crypto scams. People were tricked into investing in fraudulent financial schemes and put into fake relationships.

Massive Losses and a Global Reach

The scam is so big that it’s stressful. Catherine Conneely and Thomas Birch of Cor Cordis were appointed as liquidators and got nearly 1,500 claims from people who had been ripped off, totalling over $35.8 million in losses. There were victims from 14 countries, such as Australia, the United States, Cameroon, Ghana, India, Nepal, the Philippines, and France. Surprisingly, only three of the 95 companies had assets that could be tracked down. 

The Fight Against Scam Websites

ASIC is also stepping up its online security. Every week, the watchdog takes down about 130 scam websites for more than 10,000 sites. These include more than 7,200 fake trading platforms and 1,564 phishing sites. Sarah Court, Deputy Chair, warns, though, that scams are like hydras: cut off one head, and more will grow in its place. 

Slight Progress Despite Threat

The National Anti-Scam Center in Australia reports that scam losses will drop by 26% in 2024, bringing the total amount lost to scams to $2 billion. There were also 17.8% fewer reports of scams, which gives people hope that unified regulatory action is making a difference.

Conclusion

ASIC’s tough action sends a strong message to fraudsters: “Australia will not tolerate financial deception.” Regulators also need to come up with new ways to stop scams.