- ASIC winds up 95 scam-linked companies posing as crypto and FX platforms.
- Many fake firms used stolen identities to create online legitimacy.
- Over 130 scam websites are taken down each week by ASIC.
Australia’s corporate watchdog, ASIC, intensified its crackdown on digital asset fraud, successfully shutting down 95 firms accused of running large-scale “pig butchering” scams through online investment schemes and romance baiting.
These scams, named for the cruel method of fattening a pig before slaughter, typically involve scammers building trust with victims before convincing them to deposit funds into fake investment platforms – often involving crypto, forex, or commodities – presented via genuine-looking websites and apps. Once significant funds are invested, the scammers disappear.
Scammers’ Sophisticated Methods Exposed
ASIC secured Federal Court backing to dismantle the infrastructure of these fraudulent operations. The regulator exposed how the now-closed companies often falsified information and operated without transparency, presenting an “overwhelming” case for termination. Many posed as investment platforms promising high returns to lure unsuspecting users.
Related: Australia’s Crypto Rules Are Changing—Here’s What to Expect in 2025
ASIC Deputy Chair Sarah Court warned scammers increasingly use sophisticated tools, including professional websites, fake mobile apps, and stolen identities to impersonate legitimate businesses. “They offer a veneer of credibility, but behind the curtain, there’s no real management or service,” Court stated. “Our job is to tear that curtain down.”
ASIC Official Warns of ‘Hydra’ Problem, Ongoing Threat
Despite the successful closures, Court emphasized the persistent nature of the threat. ASIC actively removes scammer infrastructure, taking down over 130 fraudulent websites weekly, but new operations quickly emerge. She likened the fight to battling a hydra: “Shut down one, and two more emerge.” Consequently, “the threat of scams and identity fraud remains high. We remind consumers to be vigilant,” Court added.
Liquidators Catherine Conneely and Thomas Birch from Cor Cordis were appointed to handle the winding-up proceedings for the 95 closed firms.
Related: Binance Impersonation Scam Targets Australians: How to Spot and Avoid It
While ASIC’s action marks a significant blow against these scams, the regulator cautioned that the threat of online investment fraud continues, urging Australians to stay alert and verify investment opportunities thoroughly.
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