Australia Shutters Crypto Scam Network Linked to $35 million in global losses

Australia's financial regulators have shut down 95 companies related to crypto and romance fraud.

On April 7, the Australian Securities and Investment Commission (ASIC) announced that federal courts had approved a request to dissolve these entities due to fraud and false registrations.

ASIC has revealed that these companies are set up using false details and operate under the pretense of providing legitimate services.

They are part of a wider fraud network linked to “pig slaughter,” a fraud model that combines crypto investment with emotional manipulation.

The court found that the company lacked proper governance and posed serious consumer risks.

Many were connected to questionable platforms that promoted fake investment opportunities for crypto, forex and commodities. Victims were often made to believe they were dealing with trustworthy businesses through websites that looked professionals and fake corporate identities.

The ASIC vice-chairman, Sarah Court, said a court decision was necessary to prevent further harm.

The court explained that the people behind these scams use complicated setups to hide their true intentions. Their tactics included establishing fake businesses that seemed persuasive enough to win the trust of the victims.

With this in mind, she highlighted ASIC's broader fight against online scams, noting that regulators are removing more than 130 fraud websites each week.

Despite these efforts, fraud remains persistent. The court compared them to “hydra” and warned that new things often look as fast as others are removed.

She said:

“These scams are like Hydra. You're closing one and two more. So you're warning consumers that the threat of fraud and identity scams remains high. It reminds consumers that they're on alert.”

Meanwhile, the court appointed Catherine Connery and Thomas Burch of Cordis as co-liquidators.

So far, nearly 1,500 claims have been filed, with losses exceeding $35 million. The victims come from 14 countries, including the US, Australia, India, Ghana and France.

However, the court filing states:

“The interim liquidators have found out that of the 95 companies, only assets totaled only $33,018.