In a significant crackdown on scam operations, the Federal Court of Australia has approved the winding up of 95 companies suspected of running elaborate crypto investment and romance scams, commonly known as “pig butchering” schemes.
The decision followed an application by the Australian Securities and Investments Commission (ASIC), which alleged the companies were incorporated using false information and primarily existed to defraud victims under the guise of offering legitimate services.
According to ASIC Deputy Chair Sarah Court, the companies shared a recurring pattern of deceit, where scammers gained victims’ trust through fake relationships before luring them into fraudulent crypto or financial investments. These tactics, Justice Angus Stewart noted in the court’s March 21 ruling, were evident across 48 misconduct reports involving 17 companies.
The court order came amid a surge in scam-related losses and reflects growing concerns that many scams are linked to Southeast Asia. Joint liquidators Catherine Conneely and Thomas Birch from Cor Cordis oversee the closure of 95 companies, having found that roughly 1,500 investor claims amount to over $35.8 million in losses, affecting claimants from 14 countries, including Australia, the U.S., and India.
However, only three companies have any assets, leading to recommendations for the immediate deregistration of the others. Meanwhile, the Australian Securities and Investments Commission (ASIC) has stepped up its enforcement efforts by removing around 130 scam websites weekly, taking down over 10,000 fraudulent sites, including more than 7,200 fake investment platforms.
“These scams operate like hydras — take one down and two more appear,”
the Court remarked, urging Australians to remain alert as the threat of scams and identity fraud continues to loom large.
Despite these alarming developments, there’s a silver lining. The National Anti-Scam Centre recently reported a 26% reduction in scam-related financial losses, totaling $2 billion in 2024. The overall number of scam reports also dropped by 17.8% to 494,732. Meanwhile, in March, the Australian Federal Police (AFP) launched an investigation into a large-scale cryptocurrency scam in which fraudsters impersonated Binance representatives to defraud Australians.
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