AUSSIE REGULATOR TO SHUT 95 HYDRA FIRMS LINKED TO CRYPTO, ROMANCE SCAMS

Last updated: June 19, 2025, 21:20 | Written by: Changpeng Zhao

In a landmark move against financial fraud, the Australian Securities and Investments Commission (ASIC) has secured a Federal Court approval to dismantle a vast network of 95 interconnected companies. Aussie regulator to shut 95 hydra firms linked to crypto romance scams. involved in suspected crypto and romance scams, commonly known as pig butchering. approval from Hong KongThese firms, operating under a “hydra” structure, are suspected of orchestrating sophisticated crypto scams and heartless romance scams, often referred to as ""pig butchering."" This decisive action underscores Australia's commitment to protecting its citizens from the devastating impact of these increasingly prevalent and elaborate schemes.The closure of these 95 entities is a significant victory in ASIC's ongoing battle against digital asset fraud and represents a major step towards safeguarding investors and vulnerable individuals from falling victim to malicious actors. Australia's corporate watchdog to shut 95 crypto firms linked to scams. (ENG)The regulator's aggressive approach, including the removal of thousands of scam websites and apps, highlights the severity of the situation and the determination to combat financial crime in the digital age. 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. TheThis crackdown sends a clear message: Australia will not tolerate such fraudulent activities and will actively pursue and dismantle these criminal networks.

Understanding the Hydra Structure and Pig Butchering Scams

The term ""hydra"" refers to the interconnected nature of these fraudulent companies.Like the mythical creature, if one entity is shut down, others emerge to take its place.This complex web of companies makes it incredibly difficult to track and dismantle the entire operation.

Pig butchering is a particularly insidious type of scam where criminals cultivate fake romantic or emotional relationships with their victims online.The scammers slowly build trust and rapport over weeks or months, before introducing the idea of investing in seemingly lucrative cryptocurrency platforms. Australia s corporate watchdog has been given the nod to shut down 95 hydra companies that it suspects engaged in crypto investmenOnce the victim invests, the scammers manipulate the platform to show initial profits, encouraging them to invest even more.Eventually, the victim is unable to withdraw their funds, and the scammer disappears, leaving them with devastating financial losses and emotional trauma.

How Pig Butchering Works: A Step-by-Step Breakdown

Grooming: The scammer creates a fake online persona and initiates contact with the victim, often through dating apps or social media.
Building Trust: They engage in consistent communication, sharing personal details and expressing romantic interest to establish a strong emotional connection.
Introducing the ""Opportunity"": The scammer casually mentions their success in cryptocurrency investing and subtly introduces the idea to the victim.
The Hook: They guide the victim to a fake trading platform, often disguised as a legitimate exchange.
Fake Profits: Initial investments appear to yield substantial returns, enticing the victim to invest larger sums.
The Slaughter: When the victim attempts to withdraw their funds, they encounter obstacles, fees, or are simply denied access.The scammer then disappears, leaving the victim with nothing.

ASIC's Crackdown: A Multi-Pronged Approach

ASIC's response to these scams has been comprehensive and proactive. Australia Links 95 Firms to Pig Butchering Crypto Scam Scheme in Major Crackdown The companies are suspected of being part of a widespread scam operation, particularly involving pig butchering schemes a method where scammers cultivate fake romantic or emotional relationships online to lure victims into investing in bogus crypto platforms.The regulator has employed a variety of strategies to combat these fraudulent activities, including:

Website and App Removal: ASIC has successfully taken down thousands of scam websites and apps, including over 7,000 fake investment platforms and 1,200 crypto-related scams.
Court Action: The agency has actively pursued legal action against individuals and entities involved in these scams, seeking to freeze assets and recover funds for victims.The recent court approval to shut down the 95 hydra firms is a prime example.
Public Awareness Campaigns: ASIC has launched public awareness campaigns to educate Australians about the risks of crypto and romance scams, providing tips on how to identify and avoid them.
Collaboration with Other Agencies: ASIC works closely with other law enforcement agencies and international regulators to share information and coordinate efforts to combat cross-border scams.

The Role of Cryptocurrency in These Scams

Cryptocurrency's inherent features, such as its decentralized nature and relative anonymity, make it an attractive tool for scammers.The lack of centralized control and the difficulty in tracing transactions create a challenging environment for law enforcement to track and recover stolen funds.However, ASIC is committed to working with industry stakeholders to develop strategies to mitigate these risks and enhance the security of the digital asset ecosystem.

Why Crypto Scams are So Prevalent:

Anonymity: Cryptocurrency transactions can be difficult to trace, making it challenging to identify and apprehend scammers.
Global Reach: Crypto scams can operate across borders, making it difficult for law enforcement to pursue perpetrators.
Lack of Regulation: The relatively unregulated nature of the cryptocurrency market creates opportunities for fraudulent activity.
Complexity: The technical complexity of cryptocurrency can be confusing for many people, making them more vulnerable to scams.

Protecting Yourself: Tips to Avoid Becoming a Victim

While ASIC is actively working to combat these scams, it is crucial for individuals to take proactive steps to protect themselves. The university s endowment fund will aim for a minimum five-year Bitcoin holding strategy, citing its long-term potential.Here are some essential tips:

Be wary of unsolicited approaches: Be skeptical of anyone who contacts you online offering investment opportunities, especially if they pressure you to act quickly.
Do your research: Before investing in any cryptocurrency platform, thoroughly research the company, its founders, and its regulatory compliance.Look for independent reviews and verify its legitimacy.
Be cautious of ""guaranteed"" returns: No investment can guarantee profits. Aussie regulator to shut 95 hydra firms linked to crypto, romance scams Posted on Ap by 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.Be extremely wary of anyone who promises unrealistic returns.
Never share your private keys or passwords: Keep your cryptocurrency wallets and exchange accounts secure by using strong passwords and enabling two-factor authentication. 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 butcherinNever share your private keys with anyone.
Be skeptical of romantic overtures online: Be cautious of individuals you meet online who quickly express strong feelings for you and pressure you to invest.
Consult a financial advisor: Before making any investment decisions, seek advice from a qualified and licensed financial advisor.
Trust your instincts: If something feels too good to be true, it probably is.

The Impact on Victims: Financial and Emotional Devastation

The impact of these scams on victims can be devastating, both financially and emotionally.Victims often lose their life savings, retirement funds, and other valuable assets. Aussie regulator to shut 95 hydra firms linked to crypto, romance scamsThe emotional trauma of being betrayed and scammed can lead to depression, anxiety, and even suicidal thoughts. In a significant move against financial fraud, the Australian Securities and Investments Commission (ASIC) has secured a Federal Court approval to dismantle a network of 95 interconnected firms. These so-called hydra companies are alleged to be the masterminds behind sophisticated crypto scams and heartless romance scams, collectivelyIt is essential to remember that victims are not to blame and that seeking help is a sign of strength.

Resources for Victims of Scams:

IDCare: Provides free, confidential support and guidance to individuals who have been affected by identity theft and scams.
Lifeline: Offers 24/7 crisis support and suicide prevention services.
Beyond Blue: Provides information and support for individuals experiencing anxiety and depression.
The Australian Cyber Security Centre (ACSC): Offers advice and resources on how to protect yourself from cybercrime.

The Future of Crypto Regulation in Australia

The recent crackdown on hydra firms highlights the need for greater regulation of the cryptocurrency industry in Australia.ASIC is actively working with the government and industry stakeholders to develop a comprehensive regulatory framework that protects investors while fostering innovation.This framework is likely to include measures such as licensing requirements for crypto exchanges, enhanced KYC/AML procedures, and stricter rules on advertising and marketing.

Increased regulation is crucial to creating a safer and more trustworthy environment for cryptocurrency investors in Australia. Australia s financial watchdog is taking a hard stance on crypto and romance scams. The Federal Court of Australia has approved the Australian Securities and Investments Commission s (ASIC) request to shut down 95 companies tied to fraudulent activity including crypto trading and romance scams known as pig butchering.It will help to deter fraudulent activities, protect consumers, and promote the responsible growth of the digital asset industry.

ASIC's Ongoing Efforts and the Fight Against Financial Crime

The shutdown of these 95 companies is just one battle in ASIC's ongoing war against financial crime. ASIC has taken steps to remove numerous related websites and apps, adding to its ongoing efforts to combat digital asset scams. In recent months, ASIC has removed over 10,000 scam websites, including more than 7,000 fake investment platforms and 1,200 crypto-related scams. The shutdown follows a broader crackdown on financial fraud in Australia.The regulator is committed to using all available tools to protect Australians from scams and fraudulent activities.This includes:

Continuous Monitoring: ASIC actively monitors the financial market for signs of fraudulent activity and takes swift action to investigate and prosecute offenders.
International Cooperation: ASIC works closely with international regulators to combat cross-border scams and share information about emerging threats.
Technological Innovation: ASIC is investing in new technologies to detect and prevent scams, including artificial intelligence and machine learning.
Education and Awareness: ASIC continues to educate the public about the risks of scams and how to protect themselves.

Conclusion: A Strong Stance Against Scams

The Australian Securities and Investments Commission's decisive action to shut down 95 hydra firms linked to crypto and romance scams demonstrates a strong commitment to protecting Australians from financial fraud.This crackdown serves as a warning to scammers that their activities will not be tolerated and that they will be held accountable for their actions. The Australian securities regulator s application to close 95 hydra firms believed to be running crypto trading and romance scams has Aussie regulator to shut 95 hydra firms linked to crypto, romance scams - XBT.MarketWhile the fight against scams is an ongoing battle, ASIC's proactive approach, combined with increased public awareness and responsible regulation, offers hope for a safer and more secure financial future for all Australians. The Australian securities regulator s application to close 95 hydra firms believed to be running crypto trading and romance scams has been approved by the Federal Court of Australia.By staying informed, exercising caution, and reporting suspicious activity, we can all contribute to creating a more resilient and scam-resistant society. 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.Remember to always do your research, be wary of unsolicited offers, and never invest more than you can afford to lose.The shutdown of these ""pig butchering"" operations is a win, but vigilance remains key.