- Australia’s ASIC won Federal Court approval to wind up 95 companies involved in “pig butchering” crypto and romance scams due to fraudulent practices and poor governance.
- Joint liquidators were appointed as nearly 1,500 claims were filed, with victims across 14 countries and losses exceeding US$35M.
- ASIC is cracking down on roughly 130 scam websites each week.
Australia’s security watchdog has intensified its efforts to combat online fraud and protect consumers from sophisticated scams involving cryptocurrencies.
The Federal Court gave the Australian Securities and Investments Commission (ASIC) the go-ahead to wind up 95 companies suspected of engaging in crypto investment and romance scams known as “pig butchering”.
This comes after the Federal Court found that the firms lacked proper governance and posed a significant risk to consumers. The companies were incorporated with false information and purportedly offered genuine services, but instead, they defrauded victims.
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Like Hydras
ASIC Deputy Chair Sarah Court highlighted the complexity of these scams, outlining how these fraudsters used elaborate setups to mask their true intentions:
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.
Sarah Court, ASIC Deputy ChairASIC has stepped up its efforts online by removing roughly 130 scam websites each week, bringing the total to over 10,000 sites, including thousands of fake investment platforms and phishing scams.
The court has appointed Catherine Conneely and Thomas Birch from Cor Cordis as joint liquidators. According to court filings, nearly 1,500 claims have been submitted, with reported losses exceeding US$35M (AU$58M).
The victims span 14 countries, including the United States, Australia, India, Ghana, and France. The provisional liquidators noted that of the 95 companies, only three hold assets, totaling just US$33,018 (AU$55,210), while seven companies have liabilities amounting to approximately US$38.7M (AU$64.7M).
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It should be noted that Australia’s National Anti-Scam Centre reported a 26% decline in scam losses to US$2B (AU$3.35B) in 2024, alongside a 17.8% drop in scam reports, totaling 494,732.
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