Australia’s corporate watchdog has been given the nod to shut down 95 “hydra” companies that it suspects engaged in crypto investment and romance scams, known as “pig butchering.”The Australian Securities and Investments Commission’s application to wind up the companies was approved by the Federal Court of Australia on just and equitable grounds after ASIC found that most of the companies had been incorporated with false information.
Many of these companies were set up purporting to provide “genuine services” but were instead believed to be scamming their victims, ASIC Deputy Chair Sarah Court said in an April 8 statement.“There appears to be a common pattern of scam activity in the nature of ‘pig butchering,’” Justice Angus Stewart said in an April 4 court ruling after looking at 48 “Reviews of Misconduct” from 17 companies accused of facilitating romance scams.
Related: Australian regulator’s ‘blitz’ hits crypto exchanges, money remittersNearly 1,500 claims by “investors” had been received by the provisional liquidators, amounting to total claims of over $35.8 million, according to the court order.
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Author / Journalist: Cointelegraph by Brayden Lindrea
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