ASIC Shuts Down 95 Scam Crypto and Romance Firms After Major Legal Victory

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ASIC Shuts Down 95 Scam Crypto and Romance Firms After Major Legal Victory
Table Of Contents
  1. Australian Federal Court Approves ASIC’s Move Against ‘Pig Butchering’ Crypto Frauds
  2. Romance Meets Fraud: How the Scam Played Out
  3. What Happens to the Shut Down Companies?
  4. ASIC’s Wider Battle Against Crypto Scams
  5. Scam Losses Are Declining, But the Fight Isn't Over

Australian Federal Court Approves ASIC’s Move Against ‘Pig Butchering’ Crypto Frauds

In a decisive legal win against organized scam operations, the Federal Court of Australia has approved the Australian Securities and Investments Commission (ASIC)’s request to shut down 95 companies linked to fraudulent crypto investment and romance scams. These entities were allegedly part of a widespread global scheme known as “pig butchering,” where victims are manipulated through fake relationships and lured into bogus cryptocurrency investments.

This court order, issued by Justice Angus Stewart on March 21, follows ASIC’s investigation into 17 companies that revealed clear signs of coordinated misconduct. Most of the firms were found to be operating under false pretenses and providing no genuine financial services.

Romance Meets Fraud: How the Scam Played Out

The term “pig butchering” describes a psychological tactic used by scammers who slowly build trust with their victims through online romance. Once emotionally attached, the victims are then pushed into investing in fake crypto platforms or financial products.

ASIC Deputy Chair Sarah Court described these scams as part of a recurring pattern of manipulation. “These are not isolated cases,” she said. “Victims were systematically groomed into trusting relationships, only to be defrauded under the illusion of love and investment.”

ASIC has reason to believe many of these operations are being coordinated from Southeast Asia, but the impact is global. So far, over 1,500 victims across 14 countries have reported losses totaling $35.8 million. Affected countries include Australia, the U.S., Ghana, Nepal, India, France, and the Philippines.

What Happens to the Shut Down Companies?

Catherine Conneely and Thomas Birch from restructuring firm Cor Cordis have been appointed as joint liquidators. Their investigation found that 92 of the 95 companies had no real assets—functioning as shell firms used purely to perpetrate scams. Only three had any notable holdings, while the rest are now recommended for deregistration.

ASIC’s Wider Battle Against Crypto Scams

This legal action is part of ASIC’s broader effort to clean up the crypto space. The regulator reports it is taking down around 130 fraudulent crypto websites per week, having already removed over 10,000 scam sites to date. Of these, 7,200 were fake investment platforms, while 1,500 were phishing sites designed to steal users’ personal data.

The court likened the situation to fighting a “hydra”—cut off one head, and two more grow in its place. The warning to the public is clear: stay vigilant and think twice before trusting unsolicited financial advice or relationships online.

Scam Losses Are Declining, But the Fight Isn’t Over

There’s a silver lining. According to Australia’s National Anti-Scam Centre, scam-related losses dropped by 26% in 2024, falling to $2 billion. The total number of scams also decreased by nearly 18%, with 494,000 cases reported throughout the year.

Despite this progress, ASIC’s latest crackdown highlights just how aggressive and organized crypto-related fraud has become. As regulators ramp up enforcement, education and public awareness remain key tools for everyday investorsto avoid falling victim.

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