According to an August 19 statement, the Australian Securities and Investment Commission (ASIC) has shut down 615 crypto scam websites in the past year.
This action is part of a broader effort to combat investment fraud in the country. The regulator closed 7,300 scam websites, including 5,530 fake investment platforms and 1,065 phishing sites.
Over $1 billion lost
ASIC cited the increase in investment fraud as the reason for these removals, revealing that such scams resulted in approximately $1.3 billion in losses in 2023. The regulator emphasized that closing these sites will help disrupt the connection between scammers and potential victims.
Sarah Court, deputy chair of ASIC, stressed that scammers are exploiting Australians and stealing billions every year. She noted that while technology offers many benefits, it also presents new opportunities for fraud.
The court further emphasized the importance of quickly removing these sites to protect Australians, with an average of 20 investment fraud websites removed every day. She added:
“Scammers will continue to adapt and find new ways to lure consumers, and ASIC remains proactive in detecting and disrupting investment fraud.”
Among the sites taken down was Dexa Trade Markets, which ASIC identified as a crypto scam platform. The regulator took action after an Australian consumer reported he had fallen victim to a crypto investment scam, falsely claiming international regulations, high trading volumes and millions of investors.
Crypto scams
Australia’s regulatory actions reflect how crypto fraud remains a major problem hindering the sector’s growth.
Data from the California Department of Financial Protection and Innovation (DFPI) showed that fraudulent trading platforms made up 87% of all reported crypto fraud in 2024.
According to the regulator:
“Imposter websites are one of the most common reported scams.”
Malicious players try to take advantage of the confusion created by creating companies or websites with names that look or sound like those of other companies or websites also active in the market.