ASIC Shuts 95 Firms in Major Digital Asset Fraud Crackdown

Australia’s corporate regulator, ASIC, has taken decisive action against digital asset fraud by shutting down 95 firms involved in large-scale "pig butchering" scams. These scams, which involve building trust with victims before convincing them to deposit funds into fake investment platforms, have been a significant concern for the regulator. The scams often involve crypto, forex, or commodities and are presented through genuine-looking websites and apps. Once victims invest significant funds, the scammers disappear, leaving them with substantial losses.

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 of these firms posed as investment platforms promising high returns to lure unsuspecting users. The regulator's actions highlight the sophisticated methods used by scammers, including professional websites, fake mobile apps, and stolen identities to impersonate legitimate businesses. ASIC Deputy Chair Sarah Court warned that these scammers offer a veneer of credibility, but behind the curtain, there’s no real management or service. "Our job is to tear that curtain down," Court stated.

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.

While ASIC’s action marks a significant blow against these scams, the regulator cautioned that the threat of online investment fraud continues. The regulator urged Australians to stay alert and verify investment opportunities thoroughly. The crackdown underscores the ongoing battle against digital asset fraud and the need for continuous vigilance from both regulators and consumers.