Key Insights
- Australian regulator ASIC removed 615 cryptocurrency investment scams in the past year.
- ASIC has taken down over 7,300 fraudulent websites since July 2023, with crypto scams being a significant portion.
- Investment scams caused approximately $1.3 billion in losses to Australians in 2023, according to ACCC report.
SYDNEY (MarketsXplora) – The Australian Securities and Investment Commission (ASIC) has removed 615 cryptocurrency investment scams over the past year as part of an extensive operation targeting investment fraud, the financial regulator announced on Monday.
In a broader sweep, ASIC has dismantled over 7,300 fraudulent websites since July 2023, with crypto-related scams accounting for a significant portion of the takedowns.
The crackdown comes in response to alarming figures from the Australian Competition and Consumer Commission (ACCC), which reported that investment scams caused approximately $1.3 billion in losses to Australian citizens in 2023.
Sarah Court, Deputy Chair of ASIC, emphasized the severity of the situation, stating,
“Australians are still losing billions of dollars each year to scams. Scammers are criminals targeting the hip pockets of hard-working Australians – they don’t discriminate, and they use sophisticated techniques to steal information and money.”
As an example of its swift action, ASIC highlighted the takedown of Dexa Trade Markets, a major crypto scam website that falsely claimed international regulation and inflated figures of trading volume and investor numbers. The regulator noted that the site was removed within an hour of being referred to the takedown provider.
The issue of crypto-related fraud extends beyond individual websites. Last week, it was reported that the ACCC alleged more than half of crypto-related advertisements on Facebook were scams or violated Meta’s policies, according to The Guardian.
This Australian crackdown occurs against a backdrop of global concerns over crypto scams. In a recent development, a Florida woman has sued Google, claiming she lost $5 million to a fraudulent crypto app downloaded from the Google Play Store. The lawsuit alleges that Google took three months to remove the app after being notified of the scam.
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