The Australia Securities and Investment Commission (ASIC) has shut down 95 companies connected to crypto romance scams. This follows court approval, which allows the regulation to wind down the corporate entities.
According to the regulator, the court approved the request after it discovered that the companies were operating under pretenses. Most of these companies registered with false details and did not offer any services aside from being a front for scammers. “The Court agreed with ASIC in finding that there was a justifiable lack of confidence in the conduct and management of each of the 95 companies, with Justice Stewart calling the case for winding up each company “overwhelming”,” the report said.
Australia shuts down over 10,000 scam websites
After the approval, the court has also taken the necessary step to wind up the companies, with liquidators receiving claims worth $35 million from about 1,500 victims. ASIC Deputy Chair Sarah Court said that ASIC had taken steps to protect investors. By removing the companies from its registry, they no longer have any credibility, which should help potential investors from falling victim.
Meanwhile, the commission also noted that it has shut down websites and digital platforms associated with these companies. According to the Court, ASIC shuts down an average of more than 130 websites every week to stamp out the scams.
Still, these scams remain a major problem, and the regulators want consumers to be extra vigilant. “These scams are like hydras: you shut down one and two more take its place. That’s why we’re warning consumers that the threat of scams and identity fraud remains high. We remind consumers to be vigilant.” The move has seen positive results with the amount lost to scammers in Australia dropping by 26% in 2024 compared to 2023.