Australian regulator shuts down over 600 crypto scams in a year

The Australian Securities and Investments Commission (ASIC) has taken decisive action against the growing threat of cryptocurrency-related fraud, reporting the closure of 615 crypto investment scams in the first year of its investment scam disruption program. 

These scams accounted for approximately 9% of the total 7,300 fraudulent investment websites that ASIC identified and took down during this period. 

The regulator's efforts are part of a broader initiative to protect Australian investors from the increasingly sophisticated tactics employed by scammers in the digital age.

The scope of these scams is vast, with Australians losing a staggering A$1.3 billion (around $870 million) to investment fraud in the past year alone. 

The types of scams vary, with some fraudsters luring victims by falsely promising cryptocurrency investments that are never actually made. 

Other scams include phishing websites designed to steal personal data or platforms that claim to use artificial intelligence (AI) to generate high returns, all under false pretenses.

Sarah Court, ASIC’s deputy chair, emphasised the dual-edged nature of technological advancements, acknowledging that while they offer significant benefits, they also provide new opportunities for criminals to exploit. 

Court highlighted the importance of ASIC’s rapid response in taking down these malicious websites, with the regulator removing an average of 20 investment scam sites daily. 

This swift action is critical in preventing further harm to the public, as these fraudulent sites can quickly drain victims' finances.

Among the fraudulent companies targeted by ASIC was Dexa Trade Markets, which falsely claimed to be internationally regulated, boasting billions in trading volume and millions of investors. 

The naming of such companies underscores the importance of ASIC’s work in dismantling these fraudulent schemes and protecting investors from the significant financial losses they can cause.

ASIC's ongoing efforts to combat crypto-related fraud demonstrate the regulator's commitment to maintaining the integrity of Australia's financial markets and safeguarding the interests of its citizens. 

As the popularity of cryptocurrencies continues to grow, so too does the need for vigilant regulatory oversight to prevent exploitation and ensure a safe investment environment.