Australia’s top financial watchdog, the Australian Securities and Investments Commission (ASIC), has taken decisive action against an extensive scam network that blended crypto fraud with emotional manipulation. On April 7, 2025, ASIC confirmed that the Federal Court approved its request to dissolve 95 companies that operated under fraudulent identities and posed a serious threat to consumers.
The dissolved companies participated in one of the most deceptive schemes to date—“pig butchering”—a term used to describe scams that merge romantic manipulation with false crypto investment promises. Scammers lured victims through emotionally-charged tactics, built trust over time, and then tricked them into fraudulent investment schemes.
Scam Companies Operated Under Fake Registrations
ASIC discovered that all 95 companies operated under false business registrations, using fabricated director information and fake addresses. These businesses maintained a veneer of legitimacy, often setting up professional websites and polished corporate branding to attract unsuspecting investors.
Victims across 14 countries—including the United States, Australia, India, Ghana, and France—interacted with these entities believing they dealt with credible investment firms. Many lost thousands to tens of thousands of dollars before realizing they had fallen prey to coordinated fraud.
The Federal Court’s investigation revealed that none of the companies demonstrated proper governance structures, and all failed to provide any evidence of actual financial services. Instead, the businesses operated solely to defraud victims, leveraging trends in cryptocurrency, foreign exchange, and commodities trading to make their scams appear profitable and cutting-edge.
ASIC’s Broader Mission Against Online Scams
Deputy Chair Sarah Court led ASIC’s efforts in this crackdown and addressed the urgency behind the court proceedings. She emphasized that the scammers used intricate setups to mislead consumers, making it difficult to distinguish fake businesses from legitimate ones. Court explained that these operations had grown increasingly sophisticated over the past two years, often combining romantic ploys with financial scams in a highly organized manner.
“These scams are like hydras—you shut down one and two more take its place,” Court said. “That’s why we’re warning consumers that the threat of scams and identity fraud remains high. We remind consumers to be vigilant.”
ASIC continues to wage a larger battle against online fraud, removing more than 130 scam websites every week. These sites often impersonate regulated financial firms, set up clone websites, and even mimic government entities. In many cases, scammers also hack or spoof social media accounts to make their communication appear authentic.
Victims Lose Over $35 Million
So far, nearly 1,500 claims have flooded in from victims around the globe. Cumulatively, these individuals reported total losses exceeding $35 million, a figure that continues to climb as more people come forward.
Victims often invested after engaging with scammers who built fake personal or romantic relationships through platforms like WhatsApp, Telegram, Facebook, and dating apps. These scammers pretended to be successful investors or financial advisors, promising insider tips or exclusive investment opportunities. Victims who followed through faced not only financial ruin but deep emotional distress due to the betrayal of trust.
In many cases, victims did not realize the truth until they attempted to withdraw their funds—only to find their accounts locked or drained.
Liquidators Appointed Amid Asset Disparity
Following the court’s dissolution order, the judiciary appointed Catherine Conneely and Thomas Birch of Cor Cordis as joint liquidators for the 95 scam companies. Their task involves tracing the entities’ remaining assets, verifying claims, and recovering what little can be returned to victims.
The court filings revealed a grim financial snapshot:
-
Only three of the 95 companies held any assets, and those assets totaled a mere $33,018.
-
Seven companies carried liabilities amounting to more than $38.6 million combined.
These figures underscore the severity of the fraud and the difficulty victims face in recovering their lost money.
How the Scam Operated: Anatomy of a Pig Butchering Scheme
The scam followed a consistent pattern:
-
Initial Contact
Scammers reached out to potential victims on dating apps or social media, posing as wealthy and successful individuals. They often built emotional connections through months of daily conversations, discussing dreams, family, or long-term relationships. -
Financial Introduction
Once they earned trust, the scammers introduced the idea of investing in crypto or forex. They claimed they had inside knowledge or exclusive access to profitable markets. -
Fake Platforms and Support
Victims received links to fake trading platforms that mimicked real ones. These platforms showed false profits and fabricated trading activity to reinforce trust. Some even offered “customer support” via email or chat. -
The Hook
Scammers encouraged victims to invest more over time, showing fake returns and rewards. Many reinvested their “profits,” believing they were building a portfolio. -
The Exit
When victims requested withdrawals, the platforms cited false regulations or demanded outrageous fees. Eventually, scammers stopped responding, and the platform disappeared.
This multi-layered deceit made recovery extremely difficult and often left victims too embarrassed to report the crime.
What Consumers Can Do
ASIC encourages everyone to stay alert and cautious when encountering unsolicited investment advice—especially from strangers or online acquaintances. Here are a few practical tips:
-
Always check ASIC’s register to verify a company or individual’s license and authorization.
-
Avoid sending money to unknown platforms or individuals.
-
Do not rely solely on professional-looking websites or social media endorsements.
-
Be wary of emotional appeals combined with financial offers.
-
Report any suspicious activity to Scamwatch, ASIC, or local authorities.
Consumers can also use ASIC’s Moneysmart website, which offers verified resources and up-to-date warnings about investment scams and fraudulent platforms.
Final Thoughts
The dissolution of 95 fraudulent companies marks a significant victory for ASIC in its fight against cyber-enabled financial crime. However, the scale of the deception and the global footprint of victims highlight the persistent danger lurking in online spaces. Fraudsters continue to evolve, and regulators must act just as fast, if not faster, to protect consumers.
While the court’s decision sends a strong message, Sarah Court’s warning still rings true—scams continue to grow in sophistication. One dismantled scheme often gives birth to two more.
The real defense lies in education, vigilance, and collective action. Regulators, platforms, and users must work together to expose fraud, raise awareness, and block scam operations before they take root. Until then, every user must approach online financial opportunities with a clear head, a cautious heart, and a skeptical eye.
