Australian Authorities Launch Crackdown on Crypto Scammers Impersonating Binance

Australian authorities have launched a comprehensive crackdown on crypto scammers who have been impersonating Binance, the world’s largest crypto exchange. This initiative follows a series of fraudulent attacks targeting local users, with the Australian Federal Police, National Anti-Scam Centre, and Binance Australia collaborating to warn victims about the sophisticated scam. The scam involves fraudsters using fake messages to steal cryptocurrency from unsuspecting victims.

Over 130 potential victims have been alerted as part of a proactive effort to combat the scam. The fraudsters have been using SMS and encrypted messaging platforms to pose as Binance representatives, claiming that victims' accounts had been breached. These messages, which appeared to be from legitimate existing threads with Binance, included fake verification codes and a contact phone number that led victims to an imposter hotline. Once victims called the number, they were advised to transfer their cryptocurrency to a "trust wallet," controlled by the scammers.

The crypto scam was identified through Operation Firestorm, a global effort launched last year to disrupt international crime syndicates targeting Australians through digital fraud. The AFP worked with international law enforcement to identify the perpetrators, but once the funds were transferred, they were quickly moved through a network of wallets and laundering channels, making recovery nearly impossible.

AFP Commander Cybercrime Operations Graeme Marshall emphasized the importance of swift action in protecting victims. "The AFP has worked closely with our partners at the NASC to ensure any victims in Australia targeted by these scammers were identified swiftly and given advice to help protect their cryptocurrency accounts," Marshall said in a statement. Authorities have advised victims of this scam to contact their bank or the crypto exchange immediately and report the incident to the police through ReportCyber, quoting reference number AFP-068.

Binance Australia has cooperated with local authorities to crack down on the scam while facing its own legal challenges. In December 2024, the Australian Securities and Investments Commission launched legal proceedings against Binance Australia Derivatives, accusing the platform of misclassifying retail investors and denying them essential consumer protections.

The coordinated effort by Australian authorities comes amid rising concerns about crypto scams. Last month, the Australian Competition and Consumer Commission raised alarms about the potential impact of relaxed crypto regulations in the U.S. under President Donald Trump’s administration. Those fears were reflected in the ACCC’s annual scam report, which revealed that Australians lost over $1.3 billion to investment scams in 2023, with crypto scams being a major contributor.

This crackdown highlights the ongoing challenges faced by the cryptocurrency industry. While the technology offers numerous benefits, including decentralization, security, and transparency, it also presents significant risks. Scammers are constantly finding new ways to exploit vulnerabilities in the system, and it is up to authorities and exchanges to stay one step ahead and protect investors from harm. The Australian authorities' efforts to target crypto scammers posing as Binance underscore the importance of vigilance and caution in the digital currency space.