Australian Regulator Cracks Down on 600 Crypto Scams in 12 Months

As part of its first-year campaign to combat fraudulent investment websites, the Australian Securities and Investments Commission (ASIC) has effectively dismantled 615 bitcoin investment schemes. According to a statement issued by ASIC on Monday, this initiative is a part of a larger plan that saw the shutdown of some 7,300 phishing and scam sites.

Tackling a Growing Threat

Cryptocurrency scams have become increasingly sophisticated, often luring victims by pretending to invest funds in digital assets without following through. These scams range from phishing websites that steal personal information to platforms falsely promising high returns through artificial intelligence (AI) technology. Last year alone, Australians lost a staggering A$1.3 billion (US$870 million) to such fraudulent schemes.

Sarah Court, ASIC’s deputy chair, highlighted the dual-edged nature of technological innovation, stating, “Innovative technology developments may improve how we live and work, however they also provide new opportunities for scammers to exploit.” She also emphasized the importance of swift action, noting, “Every day an average of 20 investment scam websites are taken down. The quick removal of malicious websites is an important step to stop criminal scammers from causing further harm to Australians.”

Among the many scams shut down, Dexa Trade Markets was specifically named by ASIC. The fraudulent company falsely claimed to be internationally regulated, boasting billions in trading volume and millions of investors. This case exemplifies the deceptive tactics used by such scammers to build credibility and mislead potential victims.

ASIC’s ongoing efforts reflect its commitment to protecting consumers from increasingly complex and dangerous scams in the cryptocurrency space. The regulator’s actions serve as a warning to those attempting to exploit digital investments, reinforcing the importance of vigilance in an era of rapid technological advancement.