Federal Court Approves ASIC Action Against ‘Pig Butchering’ Scams

In a significant crackdown on scam activity, the Federal Court of Australia has granted an application by the Australian Securities and Investments Commission (ASIC) to wind up 95 companies associated with crypto trading and romance scams. The companies were allegedly involved in a mass scam tactic called "pig butchering," which lures victims into investing in bogus crypto schemes through bogus romantic relationships.

According to ASIC, most of these companies were set up using false information and were not providing legitimate services. The court ruling, delivered by Justice Angus Stewart on March 21, came after reviewing misconduct reports from 17 of the accused companies. It confirmed that these companies were part of a coordinated scam operation that misled individuals from around the world.

"These scams are not just isolated events. ASIC Deputy Chair Sarah Court, said “these cases show a definite pattern of manipulation and deceit”. She explained that victims were drawn into online relationships, only to be convinced later to invest in non-existent crypto platforms or financial products.

How the Scams Worked

The term " pig butchering " refers to how scammers build emotional trust with their victims—grooming them like “fattening a pig” before financially “slaughtering” them. It’s a rising trend in online fraud, especially involving crypto.

ASIC believes much of this criminal activity is operating from Southeast Asia. So far, nearly 1,500 investor claims have been filed, totaling over $35.8 million in losses. Victims are spread across 14 countries, including Australia, the United States, Ghana, India, Nepal, France, and the Philippines.

What Happens to the Companies

Catherine Conneely and Thomas Birch from the restructuring firm Cor Cordis have been appointed as joint liquidators to handle the shutdown. Their investigation revealed that only three of the 95 companies had any assets. The remaining 92 were essentially empty shells and were recommended for immediate deregistration.

Ongoing Fight Against Scam Websites

In addition to targeting fake organisations, ASIC says it is removing around 130 crypto scam websites every week. So far, the total number taken down exceeds 10,000. Among them, more than 7,200 were fake investment platforms, while over 1,500 were phishing sites designed to steal personal information.

The Court said, “ these scams are similar to hydras, cut one and other two more will come”. “We urge everyone to stay alert and cautious online.”

Scam Losses Are Falling

There is some progress. Australia’s National Anti-Scam Centre recently reported a 26% drop in scam-related losses in 2024, falling to $2 billion. The reported scams also decreased by almost 18%, with approximately 494,000 cases reported.

The latest move by ASIC underscores the escalating threat of crypto-related fraud, and the value of international cooperation and public awareness. While regulators are stepping up, staying informed still remains the best defence for regular investors.