The securities regulator of Australia has initiated a crackdown on 95 companies allegedly involved in pig butchering crypto scams. On April 8, 2025, the Federal Court approved the regulator’s application to wind down the corporate companies.

Notably, Australia’s initiative underscores the country’s commitment to fostering a secure crypto space. The move aims to tackle the growing issue of crypto scams and fraudulent activities masquerading as legitimate companies.

Australia Cracks Down on Crypto Scams: 95 Companies Targeted

Australia’s Securities and Investments Commission has sought the court’s approval to shut down 95 firms reportedly connected to crypto scams. The Federal Court of Australia signaled a green light to the securities watchdog to wind down the companies.

Reportedly, these companies have been involved in crypto investment and romance scams, often known as pig butchering scams. Under the disguise of legitimate businesses, these companies deceived customers into investing in fraudulent crypto platforms. In pig butchering scams, the hackers build fake online relationships to gain victims’ trust, ultimately manipulating them into the scheme.

What Are Pig Butchering Scams? Explain ASIC Deputy Chair

Significantly, ASIC Deputy Chair Sarah Court identifies the pig butchering scams as “hydras.” She warned that eliminating one scam will only lead to the emergence of two more, highlighting the challenges in combating these ever-evolving threats.

Further, Sarah Court stated,

ASIC believes many of these companies were set up with the aim of providing a veneer of credibility by purporting to provide genuine services.  This action has shut these companies down and protects consumers from entities with no proper management or control, including some that were associated with potentially fraudulent activity.

Interestingly, the ASIC’s crackdown comes following India’s arrest of five individuals involved in Japan-linked crypto scams worth $700k.

Australia Takes Measures Against Crypto Fraud: Know More

The ASIC is actively making efforts to disrupt the increasing fraudulent activities connected to crypto. Sarah Court posited that the regulator dismantles over 130 scam websites every week. In addition, the ASIC is working to prevent the growth of pig butchering and other crypto scams.

“Our ongoing work to uplift and improve our registry system will also help to prevent conduct such as this from occurring in the future,” stated Court.

Recently, crypto exchange Deribit released a warning against increasing crypto job scams. The platform stated that scammers attract job seekers, impersonating as prominent crypto firms.

The post Crypto Scam: Australia Shuts Over 90 Companies Linked To Pig Butchering Schemes appeared first on CoinGape.

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Filed under: News - @ April 8, 2025 11:52 am