The Federal Court of Australia has ruled to wind up 95 companies implicated in crypto fraud and romance scams. The ruling confirmed the existence of a coordinated scam operation.
Crypto Scams
The ruling was made on March 21 by Justice Angus Stewart following a review of misconduct reports from 17 of the accused companies. These companies were formed using false information and did not provide legitimate services.
The 'Pig Butchering' Scheme
The term 'pig butchering' describes the method scammers use to build emotional trust with their victims, luring them into investments in non-existent crypto platforms or financial products. ASIC Deputy Chair Sarah Court noted that 'these cases show a definite pattern of manipulation and deceit.'
Expected Consequences
Catherine Conneely and Thomas Birch from the restructuring firm Cor Cordis have been appointed joint liquidators. Their investigation revealed that only three of the 95 companies had any assets, while the remaining 92 were essentially empty shells. Additionally, ASIC reports it is regularly removing around 130 scam sites each week.
The recent actions by ASIC underscore the rising threat of crypto fraud and the importance of international cooperation and public awareness. While regulatory measures are increasing, staying informed remains the best defense for ordinary investors.
