The Australian Securities and Investments Commission (ASIC) has obtained court approval to wind up 95 companies allegedly involved in crypto and romance scam schemes.
Closure of Fraudulent Companies
The Federal Court of Australia has granted ASIC permission to dissolve these firms on just and equitable grounds, marking one of the largest crackdowns on scam networks operating as legitimate businesses. ASIC Deputy Chair Sarah Court noted that most of these companies were established using fraudulent credentials and were never intended to provide real services.
International Victims and Phantom Companies
According to court documents, nearly 1,500 investors from 14 countries have filed claims totaling over $35.8 million. Shockingly, only three out of the 95 companies were found to possess any real assets, with the rest existing only on paper. Catherine Conneely and Thomas Birch from Cor Cordis were appointed as joint liquidators to assist in dismantling the network.
Australia's Fight Against Fraud
ASIC is also actively working to remove the digital footprints of these scams. The regulator is taking down about 130 fraudulent websites weekly, having already removed over 10,000, including more than 7,200 fake investment platforms and 1,500 phishing sites. Despite this effort, Court likened the task to battling a hydra, where shutting down one site leads to two new emerging.
Therefore, ASIC continues its fight against fraud in the digital realm, and recent data indicating a 26% decrease in scam losses may suggest positive changes in this area.
