ASIC Shuts Down 95 Companies in Major Crypto Scam Crackdown

The Australian Securities and Investments Commission (ASIC) has taken decisive action against a wave of alleged cryptocurrency and Ponzi scheme scams, securing court orders to shut down 95 companies. This move underscores the regulatory authority's commitment to protecting consumers from the pervasive threat of financial fraud. The Federal Court granted ASIC's application to wind up the 95 companies on just and equitable grounds, following the discovery that most of these entities were incorporated with false information. Justice Stewart described the case for winding up each company as "overwhelming," highlighting the lack of confidence in their conduct and management.

Many of the shut-down companies were associated with websites and apps that ASIC believes facilitated suspected scam activities. These platforms allegedly tricked consumers into making investments in phoney foreign exchange, digital assets, or commodities trading. ASIC has taken steps to have numerous related websites and apps taken down, further demonstrating its proactive approach to combating financial fraud.

Catherine Conneely and Thomas Birch of Cor Cordis have been appointed by the Court as joint liquidators of the 95 companies. This appointment ensures that the liquidation process will be conducted with the necessary expertise and oversight, aiming to recover assets and protect the interests of affected consumers.

The companies shut down on just and equitable grounds include a diverse range of entities, each with its own set of alleged fraudulent activities. Some of the notable companies include 19 Securities Pty Limited, 24-U Pty Ltd, 90Rich Markets Pty Ltd, Aleos Capital Markets Pty Ltd, and Atom Global Markets Pty Ltd, among others. The breadth of these companies reflects the extensive reach of the scams and the need for comprehensive regulatory action.

ASIC's Deputy Chair Sarah Court emphasized the hydra-like nature of these scams, noting that shutting down one entity often leads to the emergence of others. This analogy underscores the ongoing challenge faced by regulators in their efforts to curb financial fraud. Court's warning serves as a reminder to consumers to remain vigilant and cautious when dealing with investment opportunities, particularly those involving cryptocurrencies and digital assets.

The regulatory action taken by ASIC sends a clear message to potential scammers that such activities will not be tolerated. By shutting down these companies and taking down associated websites and apps, ASIC has demonstrated its resolve to protect consumers and maintain the integrity of the financial market. This proactive approach is crucial in an era where digital fraud and scams are becoming increasingly sophisticated and pervasive.