Australia shuts down 95 'hydra' firms linked to crypto scams

The Australian Securities and Investments Commission (ASIC) has secured Federal Court orders to shut down 95 companies suspected of involvement in "hydra-like" scams, including crypto investment and romance scams.

These scams, often referred to as "pig butchering," involve building trust with victims before convincing them to invest in fraudulent schemes.

ASIC Deputy Chair Sarah Court described these scams as "like hydras: you shut down one and two more take its place," highlighting the persistent threat they pose.

The companies were found to have been incorporated using false or stolen information and were associated with websites and apps that facilitated suspected scam activities, including fake trading platforms for forex, digital assets, and commodities.

The court's decision was based on just and equitable grounds, with Justice Stewart noting the evidence for winding up each company was "overwhelming."

ASIC has taken steps to remove numerous related websites and apps, adding to its ongoing efforts to combat digital asset scams.

In recent months, ASIC has removed over 10,000 scam websites, including more than 7,000 fake investment platforms and 1,200 crypto-related scams.

The shutdown follows a broader crackdown on financial fraud in Australia.

Despite a reported decrease in scam losses to AU$2 billion in 2024, ASIC continues to warn consumers about the high risk of scams and identity fraud.

The regulator emphasises the importance of vigilance when engaging with online investment platforms and encourages reporting suspicious activities.

Catherine Conneely and Thomas Birch of Cor Cordis have been appointed as joint liquidators for the 95 companies.