Regulators Shut Down 3,015 Crypto Scams—A Fifth of All Takedowns—To Protect Investors

Australia’s securities regulator, the Australian Securities and Investments Commission (ASIC), has removed over 14,000 scam and phishing websites in the past two years, with approximately 20%—or 3,015 sites—linked to cryptocurrency fraud. The regulator has been dismantling an average of 130 malicious websites weekly since launching its scam disruption initiative in July 2023 [1]. This enforcement effort is part of a broader strategy to address increasingly sophisticated online fraud schemes, particularly those exploiting social media platforms to direct users to fake investment sites [2].

ASIC has expanded its takedown capabilities to include social media advertisements, aiming to disrupt scams that use platforms like Facebook and Instagram to reach victims. Deputy Chair Sarah Court emphasized that these expanded powers are crucial to protecting consumers as scammers adopt new technologies and tactics [1]. One emerging trend is the use of AI washing—scammers falsely claiming their platforms use artificial intelligence to generate guaranteed returns—alongside cloaking techniques and AI-generated celebrity endorsements [3].

The regulator’s enforcement actions have also included shutting down fraudulent companies. In one case, federal court orders were issued to wind up 95 companies linked to international “pig butchering” schemes after receiving nearly 1,500 victim claims totaling $35.8 million in losses across 14 countries [3]. ASIC has also pursued significant civil penalties and criminal convictions, including a $57.5 million total in civil penalties imposed by courts in the first half of 2025 [1].

Investment scams remain the most financially damaging type of fraud in Australia. In 2024 alone, victims lost $945 million to such schemes. While the overall loss figures have decreased since 2023, the sophistication of these scams continues to rise, with scammers leveraging AI tools to create convincing fake websites and marketing content [1].

In a related development, Australia’s financial intelligence agency, AUSTRAC, has intensified oversight of crypto ATMs, directing exchanges to appoint external auditors to address anti-money laundering concerns. The agency also plans to establish a publicly accessible register to help consumers verify the legitimacy of crypto platforms [3]. These efforts are part of a coordinated national approach to combatting the multi-billion-dollar scam economy, with regulators targeting non-compliant exchanges, unregistered operators, and fraudulent business models.

ASIC’s expanded enforcement capabilities are seen as a critical step in addressing the evolving nature of financial fraud. However, the regulator acknowledges that traditional tools—such as investigations and court actions—must be complemented by proactive measures to keep pace with the rapid innovation in scam tactics.

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[1] Crypto Scam Sites Make Up a Fifth of ASIC's Two-Year ... (https://finance.yahoo.com/news/crypto-scam-sites-fifth-asic-054614868.html)

[2] Australian Regulator Removes 3000 Crypto Scams (https://cointelegraph.com/news/australia-regulator-crypto-investment-scam-update)

[3] ASIC Removes 14000 Scam Sites in Two Years ... (https://cryptonews.com/news/asic-removes-14000-scam-sites-in-two-years-crypto-fraud-accounts-for-20-of-takedowns/)