Australia Cuts Off Crypto Scam Hydra: 95 Fraudulent Firms Shut Down

Australia financial regulator has secured court approval to wind up 95 companies allegedly involved in a web of crypto investment and romance scams. The Australian Securities and Investments Commission (ASIC) was granted the green light by the Federal Court of Australia to dissolve the firms on just and equitable grounds, marking one of the most significant crackdowns on scam networks operating under the guise of legitimate businesses. The majority of these now-defunct entities were believed to be fronts for “pig butchering” schemes — a manipulative scam technique where perpetrators build emotional relationships with victims before coercing them into fake crypto investment platforms. ASIC Deputy Chair Sarah Court stated that most of these companies had been established using fraudulent credentials and were never intended to offer real services. Justice Angus Stewart, in reviewing misconduct reports from 17 of the implicated firms, noted a recurring pattern of deception that matched the structure of pig butchering scams. “There appears to be a common pattern of scam activity,” he affirmed in a ruling dated March 21, citing the manipulation of trust for financial exploitation. International Victims, Phantom Companies The scope of the fraud is global. According to court documents, nearly 1,500 investors across 14 countries — including the U.S., Australia, India, Ghana, and France — had lodged claims totaling over $35.8 million. Yet shockingly, only three of the 95 companies were found to possess any actual assets. The rest existed in name only, lacking the infrastructure or capital expected of genuine enterprises. To facilitate the dismantling of the network, Catherine Conneely and Thomas Birch of Cor Cordis have been appointed as joint liquidators. Their investigations led to the recommendation that 92 of the companies be immediately shut down and deregistered. Australia Fights Against a Digital Hydra But ASIC’s efforts extend beyond corporate takedowns. The regulator has also been targeting the digital footprints of these scams. It is currently removing around 130 fraudulent websites weekly, having already taken down more than 10,000 — including over 7,200 fake investment platforms and 1,500 phishing sites. Still, Court likened the effort to battling a hydra: “You shut down one and two more take its place.” Despite these odds, Australia’s National Anti-Scam Centre recently reported a 26% drop in scam losses this year , suggesting that regulators may finally be gaining ground in an escalating cyber war. The post Australia Cuts Off Crypto Scam Hydra: 95 Fraudulent Firms Shut Down appeared first on TheCoinrise.com .

Source: The Coin Rise