The financial regulator in Australia has shut down 95 businesses associated with scams that target cryptocurrency and romantic relationships.
On April 7, the Australian Securities and Investments Commission (ASIC) announced that the Federal Court granted its petition to dissolve these companies due to fraudulent activities and false registrations.
ASIC disclosed that these entities were established using fictitious information and operated under the guise of providing legitimate services.
They were part of a larger scam network linked to “pig butchering”—a deceptive scheme that blends cryptocurrency investment fraud with emotional exploitation.
The court found that these firms lacked adequate governance and posed a significant risk to consumers.
Many were affiliated with dubious platforms that marketed non-existent investment opportunities in cryptocurrency, foreign exchange, and commodities. Victims were misled into thinking they were interacting with trustworthy businesses, often through professionally designed websites and counterfeit corporate identities.
ASIC’s Deputy Chair, Sarah Court, remarked that the court’s ruling was crucial to avert further harm.
Court noted that the individuals orchestrating these scams employed intricate structures to disguise their real motives. Their strategies involved creating fake companies that appeared legitimate enough to gain victims’ confidence.
In light of this, she underscored ASIC’s ongoing battle against online fraud, highlighting that the regulator removes more than 130 scam websites each week.
Despite these initiatives, scams continue to be a widespread issue. Court likened them to a “hydra,” cautioning that new scams often emerge just as swiftly as old ones are dismantled.
She stated:
“These scams are like hydras: you shut one down, and two more take its place. That’s why we’re alerting consumers that the threat of scams and identity theft remains high. We urge consumers to remain vigilant.”
Meanwhile, the court has appointed Catherine Conneely and Thomas Birch from Cor Cordis as joint liquidators.
Currently, nearly 1,500 claims have been filed, with losses surpassing $35 million. Victims span 14 countries, including the United States, Australia, India, Ghana, and France.
However, the court filing revealed that:
“The provisional liquidators discovered that out of the 95 companies, only three possess assets, which together amount to just $33,018. Seven companies have liabilities totaling $38,689,419.”